Speculation: Cisco Targeting Nintendo?
After completing its deal for Scientific-Atlanta, Cisco Systems could go on the acquisition hunt again, and it's possible that video game maker Nintendo (among others) could be in the crosshairs, argues CNET News.com.
Computer networking firm Cisco Systems, which recently announced plans to spend $6.9 billion on cable set-top maker Scientific-Atlanta, could be looking to acquire still more companies as it seeks to further expand into the consumer electronics market.
A speculative piece on CNET suggests that Cisco, because of its history of acquisitiveness, could look to purchase companies like TiVo, Sling Media, or yes, Nintendo sometime in the near future. While an acquisition of Nintendo might seem completely ridiculous, CNET argues that it's not as far-fetched as it sounds.
"A stretch? Not really. Microsoft, which is emerging as a key competitor to Cisco in the home entertainment market, is already in this market with the Xbox 360. Gaming has already proved to be a strong application for broadband, so it makes sense that Cisco would want to own a game device to help drive more traffic on its network. With its popular GameBoy product, Nintendo would also provide Cisco an entree into the mobile-handheld market."
While CNET may be of the opinion that it's not really a stretch, we find it highly unlikely that a Japanese corporate mainstay like Nintendo would sell out to an American company. Nintendo would be much more likely to align itself with another Japanese company... if it ever felt financially pressured to put itself up for sale.
But that's exactly where this rumor falls apart, in our opinion. Last time we checked, Nintendo had over $5 billion in cash reserves. Mario and co. may be in third place in the U.S. when it comes to selling consoles, but financially the company is quite healthy. There simply is no need for them to hand over the reigns to a giant from the West like Cisco.
