Nintendo's market cap is 54.3 billion...time to buy somebody

Post by **eastside** » Wed Jul 04, 2007 1:58 am

http://www.forbes.com/2007/06/25/ninten ... r=yahootix

Uh, the corporate strategy for high market valuation is to use the captial to make a strategic acquisition of a key partner or rival. That's totally common place in America 'cept in Japan they have some honor bound cultural bias against mergers and acquistions.

Some market caps for comparrison:

Sega-Sammy - $4.8 billion
Capcom - $1.1 billion
Namco Bandai - $4.1 billion
Konami - $2.9 billion
Square Enix - $3.7 billion

Yeah, it'll never happen but one would hope that the strategic planners inside Nintendo are exploring the options.

Nintendo was worth a measly $18 billion just a year ago, btw.

Stock price falls and so does the capital.

Post by **metaleggman** » Wed Jul 04, 2007 2:23 am

Honestly, 18 billion doesn't seem that bad compared to the other numbers listed.

Then again, I'm kinda wonder what Sony and M$ are worth....

Post by **Ender** » Wed Jul 04, 2007 5:02 am

Imagine they buy all of them.
Technically possible.
It scares me.

Post by **racketboy** » Wed Jul 04, 2007 8:03 am

Sega and SquareEnix would be the best fit.
I'm really surprised Microsoft hasn't bought more. They have TONS of spare cash on hand.

You would think it would be appealing to steal more exclusives from Sony.

Post by **eastside** » Wed Jul 04, 2007 9:56 am

Sony - $50.8 billion
Microsoft - $287 billion

Square-Enix (which owns Taito, incidentally) seems the most Nintendo-like in their business ways. Capcom's small size and market value make it an attractive acquisition target but maybe not that much of a coup game-wise. The fan favorite would be Sega but that would be increasing Ninendo's payroll significantly and adding a substantial amount of debt which they don't have.

I think Nintendo's corporate strategy, despite its high stock valuation, is to be like Wii and stay minimalistic.

Post by **kinn** » Wed Jul 04, 2007 1:40 pm

In an ideal world they would give Sega their soul back by buying them up from Sammy. But I guess that highly unlikely

And doesn't Sony have like 19% shares in Square Enix?

I would guess that maybe they would buy out some American and European developers in order to get more variety in Wii games. They have plenty of support from Japanese developers.

Post by **metaleggman** » Fri Jul 06, 2007 12:26 am

kinn wrote:And doesn't Sony have like 19% shares in Square Enix?

I guess Nintendo will buy 81%

Post by **eastside** » Fri Jul 06, 2007 10:33 am

When I made this thread Nintendo stock was at $47 a share it's now at $50. An analyst just gave the stock an $80 price target with talk from Nintendo of a share spit for 2009.

Your looking at a market cap approaching nearly $100 billion.

THERE IS NO WAY THEY SHOULDN'T DO AN ACQUISTION!

Post by **eastside** » Fri Jul 06, 2007 10:36 am

THIS IS FOR REAL!!!

http://japan.seekingalpha.com/article/40304

Post by **marurun** » Fri Jul 06, 2007 8:53 pm

Dude, enough with the yelling. Thing is, Nintendo's stock price could fall dramatically if Sony actually manages to get their act together.