GoldenEye98
posts news as their odd job
They're market cap is $10.7 Billion...and Sony would have to offer more than that for shareholders to accept. Seems like a lot of money if you're Sony.
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Rumor: sony in talks to acquire take-two interactive
- Thread starter SlashBringingHasher
- Start date
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
And Sony has $21 Billion cash on hand right now right?
HotPocket69
Banned
It doesn't have to be an all cash deal, even at a %20 premium that's $12b deal, cash and stock deal can be done, probably not an all cash deal, but they might be able to swing it.
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MiyazakiHatesKojima
Banned
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Fox Mulder
Member
Anything can happen and we know nothing really. Would be huge if it happened.
I just don't see it. Take Two's value is as a third party multiplatform publisher. Sony would be buying to keep them multiplatform or over paying just to slash their value for playstation exclusives.
Getting GTA exclusive would be massive, but it would never sell 100 million copies like it can now across platforms.
I just don't see it. Take Two's value is as a third party multiplatform publisher. Sony would be buying to keep them multiplatform or over paying just to slash their value for playstation exclusives.
Getting GTA exclusive would be massive, but it would never sell 100 million copies like it can now across platforms.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
JEBUS that's a lot of money for the whole of Sony to pay, "JUST" to get all GTAs, 2K sports games, Read Dead Redemption games as exclusives though. Doesn't seem like smart money to me.
iconmaster
Banned
Holy crap.
I dunno, I look at GTAV's incredible run and think, "Yeah, that's probably worth it."
(Like most humans I'm bad at comprehending large numbers though)
I dunno, I look at GTAV's incredible run and think, "Yeah, that's probably worth it."
(Like most humans I'm bad at comprehending large numbers though)
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Afro Republican
Banned
That's not how this works.
They buy them they have less back-up resources in the war chest, the transition after the buyout and the actual Take 2 studios themselves also cost money, which means Sony would likely have to slim the fat to make the transition affordable.
You then have to throw budget to the new studios that were added as well as add to payroll. Then you need to fund their latest projects.
By being exclusive 2/3rds of revenue and profit that take-two used to make are now gone. Thus, the reason for the buyout would basically never pay off the losses unless an exclusive GTA6 sold over 100 million PS5's which ain't happening.
I forgot they also have to market the latest projects as well, not just fund the development.
With all the IPS making less than they did before, and the large amount of red already on the table, they have likely already lost nearly all of their warchests and moved most of their other resources to cover all the above.
Next thing you know Sonys other divisions will be effected and buildings will start being sold again.
Keep in mind Sony started selling buildings years ago mostly because of the PS3 money sink and the things around it (plus the smartphone division) which all were worth MUCH less than all the money Sony would have to spend to buy and transition Take Two into a owned subsidiary. So we are talking a MUCH worse financial situation to cut long-term and short-term losses.
People simplify market value to "if one number is bigger than the other they can buy it" without looking at the details, the though processes of some here would easily bankrupt many companies.
Dthomp
Member
Maybe having those exclusives, which lets not kid ourselves are the biggest third party titles that you're going to see along with the likes of Bioshock, Midnight Club, 2k (These do sell very well too across platforms) gains you those titles and maybe to Sony taking them away from Microsoft is worth alot. Cause I'd imagine it'd be hard for the biggest Microsoft fanboy to argue their first party library against even just Take Twos, let alone the rest of the Sony exclusive titles.
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Cert.in.Death
Member
Going off some general publicly availabe info, if the price is $130/share at 105.77m outstanding, the purchase price would equate to around $13.75b. Structuring that payment would clearly be partial cash, partial stock, but my instinct tells me if the price is around that amount it would favor upfront cash more heavily than stock in Sony corp.
If true, the treasure trove of IP - original or licensed - Sony would obtain is immense. This is, IMO, a far bigger acquisition than the rumored MS+EA bromance that's been the source of rumors forever.
Afro Republican
Banned
If you think Era has 20,000 active members online I'll have what you're smoking. It's maybe a bit more than double Neogaf at best, and that's excluding bots which seem to be considered members as well.
Neogafs, peak based on some older big polls is around 325 or so a day, I'd say 600+ for era looking at it currently.
Badlucktroll
Member
I could see this as being a move to counter Google, which Sony might see as being the first successful game streaming service that would cause consumers to ignore video game consoles and play GTA 6 on their ipad or whatever. Sony wants to keep that shit off Google!
I can see both ways. And lean towards it makes sense to me. Sony relies on Playstation more than ever before. Next generation is coming fairly soon, MS is making waves, and Google might be jumping into the mix. Although I put little stock in streaming right now, if it takes off both competitors have the leg up there. If PS5 is not a huge hit then Sony might be screwed. This would put a bigger notch into Sony's belt than anything beyond brand loyalty. High risk yes, but also high reward and high risk even if they didn't make such a move.
Yeah, I'm not saying I believe this rumor, or whether or not its a good move if true. Its not a horrible deal for $12b, PE is around 29 trailing and 19 forward right now, it probably would have been a horrible deal in the Fall when it was trading at 40% higher. Buy low, sell high, hard to tell where this one is but much cheaper now than when RDR2 was released.
Buying about $1.5-3.0b in annual revenue and around $900m in profits.
MightySquirrel
Banned
Holly XCOM better not become sony exclusive ! 
vpance
Member
Probably your 2nd guess is true. Got rebuffed, then went on to plan B.
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Hissing Sid
Member
Easy way to validate this. Someone at Sony HQ just needs to nip down the hall and have a peek in the censor-ray cupboard. If they’ve been stocking up and the cupboard is full it’s a pretty safe bet that an acquisition is imminent.
Badlucktroll
Member
I just wish Sony would fucking buy Metal Gear Solid and Silent Hill. Imagine a Naughty Dog Silent Hill.
Do not underestimate the power of the dark side, er, I mean fanboys. Guaranteed we would see claims that Crackdown > GTA.
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I highly doubt Sony would spend that much money and reject PC releases. Much more likely that they would trumpet to the heavens how you can play these games cross play between PS4 and PC.
Calibos
Member
Especially these days with Anthem's big thud hitting the pavement from plummeting off the hype tower. Although, Apex and all the Sports franchises probably could give Take-Two's IPs a run for their money.
All I know is this type of large scale acquisition of either company seems bad for the industry. Although in MS's world, it seems like IPs they own will be available on many different devices so...
Phil should pick up the phone too.
Great Hair
Banned
What if Sony wants to buy up T2, but keeps them as a 3rd party. Sony would see some benefits within 5y or earlier and that´s an extra 5 to 10bill. T2 currenlty makes annually? that Sony would get.
GTA5 is one hit thing, Sony has to assume that GTA6 will even sell more copies ... 150mill+ on multiple devices? Lets assume that Google Box Streaming is a success, reaching 50mill. in no time ... and im talking about new costumers, not the same suspects buying games/consoles.
Getting T2 and keep them exclusive ... is hard to swallow. GTA6 PS5 only, i dont think any IP has similar push as Halo had. Those days are gone ..even Minecraft required phones, pc, consoles and mirowaves to sell over 150mill. copies.
If Minecraft cost MS 3bill. T2 will be worth at least 5bill.+
GTA5 is one hit thing, Sony has to assume that GTA6 will even sell more copies ... 150mill+ on multiple devices? Lets assume that Google Box Streaming is a success, reaching 50mill. in no time ... and im talking about new costumers, not the same suspects buying games/consoles.
Getting T2 and keep them exclusive ... is hard to swallow. GTA6 PS5 only, i dont think any IP has similar push as Halo had. Those days are gone ..even Minecraft required phones, pc, consoles and mirowaves to sell over 150mill. copies.
If Minecraft cost MS 3bill. T2 will be worth at least 5bill.+
nikolino840
Member
Well.. how many games of SIE are on PC? Games that are ps4/PC are not a Sony propriety
Afro Republican
Banned
Sony vendor I knows district manager, that works directly at Sony corporate in charge for retail stores for VR demos and Phone set-ups says that he heard there would be a "big announcement" soon but wasn't told if it was a buyout, whether it was related to PS, or any actual details, just that there was a memo about big news.
But he said that was last week, and it had nothing to do with stocks, it was a general company memo.
So either this is the big news or it's not. But it's very unlikely this is the big news.
Issue is Sony can't afford this acquisition as I shared in the post above, reposing here:
Another issue I have with this is that Sony doing this makes no sense, because almost anyone else like Google or EA can easily outbid them and that would give another company exclusivity because SOny convinced them to put themselves out for sale, instead of stayin independent.
And to add to my previous post quoted above, Take Two despite best selling games has had numerous losses and financial challenges, Sony would be swimming in bankruptcy with all the red. There's no money to be made hereto off-set any losses.
But he said that was last week, and it had nothing to do with stocks, it was a general company memo.
So either this is the big news or it's not. But it's very unlikely this is the big news.
Issue is Sony can't afford this acquisition as I shared in the post above, reposing here:
Another issue I have with this is that Sony doing this makes no sense, because almost anyone else like Google or EA can easily outbid them and that would give another company exclusivity because SOny convinced them to put themselves out for sale, instead of stayin independent.
And to add to my previous post quoted above, Take Two despite best selling games has had numerous losses and financial challenges, Sony would be swimming in bankruptcy with all the red. There's no money to be made hereto off-set any losses.
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Lionel Richie
Member
Fuck this, I want GTA VI to be set in Vice City, not somewhere cold so I can walk sadly in the snow.
Elcid
Banned
Lol if that happened then Microsoft can just bow out.
bitbydeath
Member
Sony be like: You know that money you still owe us for helping you make GTAV?
Spending 10-12 billion would give them great incentive to sell games on PC.
SaucyJack
Member
You’re on the right track.
Sony Corp is more than Playstation and the acquisition has to make a return at that level.
I see this as a $10-12 billion deal and certainly something that Sony could do. I don’t see them making T2 games exclusive post-acquisitions asthat would wreck the economics of the deal.
Afro Republican
Banned
Actually MS can off-set this by buying EA, but neither is going to happen.
What about a year exclusivity like the old GTAs? Games like Crash bandicoot have shown it works economically.
bitbydeath
Member
Yeah, they’ve been talking about building up TV and movies using PlayStation IP.
A GTA movie would sell a few.
Afro Republican
Banned
Ok so looks like recent news has shown this isn't a real rumor. Good, it was insane to begin with.
Edit: Seems like MW responded to.
Edit: Seems like MW responded to.
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GTR R35_Supra RZ
Banned
MS will take this deal in the heartbeat cause Sony likes to take looong naps.
GTA isn't a Japan game so I doubt if it would be censored
Imagine the reactions if they dropped a GTA trailer where the lead takes a short break from car jacking to beat up a prostitute for her money? The greatest internet war of all time would ensue. Twitter's servers would be in flames. Report buttons would wear out worldwide. Cats and dogs would dine together in Chinese Food Restaurants. Democrats would finally vote against each other over the debate between whether beating up hookers was stronger evidence of hatred towards women, or hatred towards the dominant gender / ethnicity of the prostitutes. And New Day would start eating French Toast.
Oddvintagechap
Member
Buying either would be pointless. Wouldn’t move the needle anywhere.
bitbydeath
Member
MS isn’t out of the game yet.
The Alien
Banned
Agreed.
Those licensed sports games are likely contractually obligated to be multi-platform.
Also, even if XBox sales are only 25-30% of GTA, etc. sales....they are still paying top market value for a company that will be automatically devalued once you exclusive-ize games.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
What recent news?
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