They did not do this during the PS2 dominance, I doubt they'd do it now where any risky move can be costly.
This actually wouldn't surprise me at all. Sony have been keeping quiet....keeping quiet....
then BAAM! Here's PS5 with GTA6 as an exclusive launch title.
And lol at people saying Sony can't afford it
You don't spend half your liquid assests that you've spent the past 5+ years finally replenishing on one publisher that outputs a couple of games a generation, it to me doesn't make any financial sense on Sony's behalf. Yes they have money to spend but this is a massive amount to them. It only takes a few stupid choices again next gen and the market turns and before you know it you've burned through the last half of the cash reserves you have left and off to selling buildings again. I think they need to stay the course and continue to grow the assets again, spend a couple billion if you feel inclined Capcom etc but half...? Can't see it.
https://www.musicbusinessworldwide.com/sony-completes-2-3bn-acquisition-of-emi-music-publishing/According to the SEC filing, Sony has also assumed EMI’s existing interest-bearing debt of approximately $1.3bn as a result of the acquisition, of which $960m was repaid immediately from Sony’s existing cash.
The company i want Sony to buy is Konami. It's market cap is about 6 billion dollars. Wasn't there a rumor a while back that Microsoft tried to get the rights to Silent Hill but Konami wanted Microsoft stock, and alot of it?
1. Deals are not always all cash, it can be an all stock deal, depends on the deal.
2. Even if it was all cash, and Sony paid the $130 stock price, $13-14b, they probably have enough cash for that, total cash looks like north of $20b, depending on the wording of cash on hand. Could do partial, 70% cash, 30% stock.
Again, I'm going with unlikely but yes, in theory they have enough at these levels on the surface.
Doesn't matter, stock won't pay for the costs post buyout during integration. Money doesnt stop being spend on the surface buyout, they do not have the money to sustain that acquisition.
When companies buy other companies the mid/long term is considered, not just for the sake of doing it. Sonys stalk would crumble after the initial bump, and shorts would go crazy.
Do you mean all these franchises exclusives?
I should love that to happen....
- BioShock series
- Borderlands series
- Civilization series
- Grand Theft Auto series
- Mafia series
- Max Payne series
- Midnight Club series
- MLB 2K series
- NBA 2K series
- Red Dead series
- WWE 2K series
- XCOM series
Doesn't matter, stock won't pay for the costs post buyout during integration. Money doesnt stop being spend on the surface buyout, they do not have the money to sustain that acquisition.
When companies buy other companies the mid/long term is considered, not just for the sake of doing it. Sonys stalk would crumble after the initial bump, and shorts would go crazy.
They have freaking $25b and they have $1-2b per quarter coming in, yes, they can afford this acquisition easily, even an all cash deal.
No they cannot. You are simplifying how acquisitions work, once Sony buys the company they STILL have to spend MORE money during the transition which you aren't considering, then once they finally absorb take 2 they still have to maintain everything in the studio after as well, that takes MORE CASH.
They DO NOT have the money to sustain the acquisition, nor will the acquisition get them out the red, they could never balance the losses with profits.
This is a toxic buy for any company in the industry right now, including MS, while MS or even Google could handle the first round of major cash drain it'll be a bigger financial loss over time then Nokia for either.
T2 has had many of the best selling franchises for almost 20 years, and some of them have several microtransaction systems for the last few years of releases, plus over 100 million GTAV sold, and they still lose money occasionally and "only" have a $10b cap?
You see nothing wrong here? There's a reason no ones even attempted to make that move, even in the San Andreas days
TTwo is self-sustaining, Sony has also hired an M&A specialist recently, if they are good at their job, they can do a really good vertical integration job. This would result in far lower running costs... there would be layoffs but only for middle and upper management.
I said they can easily buy it.
Why not?why?
No, they couldn't.
Wiping half your cash value off the balance sheet and replacing it with an asset is not 'easy' lol.
That makes no sense at all... they could buy 21st Century Fox but not Take 2 that costs 1/5 of the value?No, they couldn't.
Wiping half your cash value off the balance sheet and replacing it with an asset is not 'easy' lol.
I'm not saying it would be a great buy, I said they can easily buy it. TTwo would only be tiny part of their business, not sure what you think, TTwo is completely self funded with no debt and nearly $2b in cash.
Stop digging.
what does making it exclusive do for you?Why not?
No you're evading my point since the first post and keep simplifying the buyout process, if you engaged honestly this would be clear.
You dont understand the background stuff after the surface buyout, all you see are two numbers and ones bigger than another, that's not how acquisitions work, there are two costs, not one, the one post market buyout is the one you continue to ignore.
Sony would be spending within the first few months or however long till absorbed, paying around over $18+ billion dollars.
Then then AFTER THAT would have to throw money o nthe studio itself and that using Take 2 now as an example, would be an additional $5 billion dollars.
They could cut a bunch of staff and studios and focus on few Ips but that would cause less money coming in, not that Sony could make it back anyway.
Vaio caused Sony to press the panic button despite being nearly 8x less of a financial burden. Caused major issues for the company then. Did you forget that?
It's crazy how many of you guys just don't understand how acquisitions work or how companies are run and dangerously assume its like shopoing at a grocery store.
This actually wouldn't surprise me at all. Sony have been keeping quiet....keeping quiet....
then BAAM! Here's PS5 with GTA6 as an exclusive launch title.
And lol at people saying Sony can't afford it
And how’d that work out for them during the PS3 era?
That makes no sense at all... they could buy 21st Century Fox but not Take 2 that costs 1/5 of the value?
Fair enough... I mistook it with the "Sony has no money" talkI'm not saying they couldn't do it, I'm saying that it would be a) Difficult and b) a bad acquisition.
Take Twos value is based up selling to three (or four, including Nintendo) markets. If you purchase it to make it exclusive, you would be overpaying on an asset that's value is based upon it's market share. It's also why if they did it (which they won't), the games would continue to appear on all devices.
Buying 21st Century is different. They've bought the catelogue and just continue to distribute the films.
I'm not saying they couldn't do it, I'm saying that it would be a) Difficult and b) a bad acquisition.
Take Twos value is based up selling to three (or four, including Nintendo) markets. If you purchase it to make it exclusive, you would be overpaying on an asset that's value is based upon it's market share. It's also why if they did it (which they won't), the games would continue to appear on all devices.
Buying 21st Century is different. They've bought the catelogue and just continue to distribute the films.
Directly? Nothing.what does making it exclusive do for you?
I'm not saying your wrong on your opinions of a bad acquisition at this price level, not sure I have an opinion.
However, if you break out the numbers (or surmise the numbers), one could argue TTwo is pretty much a Playstation-centric company. 85% the revenue is consoles, which is probably mostly Xbox and PS, you break that down you could be talking 50-60% Playstation revenues, PC is only about 15%, but also you have to consider what Microsoft is doing with Xbox at the moment, not exactly a close system anymore, or doesn't appear to be that way in the future. Money in theory could be made up of more PS sales both hardware and software, or a good portion of it.
https://www.fool.com/investing/2019/02/27/heres-how-take-two-interactive-makes-its-money.aspx
Just playing Devi's Advocate here, like I said I think someone is trying to get a stock rise.
Agree.
The thing is, the fact it’s a PlayStation centric company makes it even less of an attractive proposition to Sony. They already have the weight of that market segment. Sure, they would increase revenues on those sales, but to the tune of however many billions? Nowhere near worth it.
You buy what you need, not what you want. As someone else suggested upthread, Sony needs kid centric games and studios. Everything else is running like a dream. They’re not losing revenue to MS, they’re losing it to Nintendo (not that they necessarily care, they’ve been open about the fact they consider themselves to be two separate markets).
They can "afford" it but is it a wise investment? We're talking about a studio that sold 100 million copies of a game this gen, that's not going to be cheap.This actually wouldn't surprise me at all. Sony have been keeping quiet....keeping quiet....
then BAAM! Here's PS5 with GTA6 as an exclusive launch title.
And lol at people saying Sony can't afford it
They can "afford" it but is it a wise investment? We're talking about a studio that sold 100 million copies of a game this gen, that's not going to be cheap.
It wouldn't make financial sense for Sony to do this. There's no game that Take Two/Rockstar makes that doesn't come to the PlayStation anyway, and the Switch isn't even a factor they don't even have GTAV a last gen game. You'd essentially be paying billions to keep them away from Microsoft, who by the way you already stomped down by more than 2 to 1 this gen and who has one foot in the multi-platform door anyway.
While I seriously doubt this story is true, I'd argue you are underplaying the reason they would be doing it. With Microsoft clearly trying to merge xbox and general PC usage, Sony securing a rather large collection of core gaming experiences would allow them to secure console gaming into the future.
If Google and the rest of FAANG get serious about gaming, MS will allocate way more capital to it, which would include the acquisition of developers and publishers.
While I seriously doubt this story is true, I'd argue you are underplaying the reason they would be doing it. With Microsoft clearly trying to merge xbox and general PC usage, Sony securing a rather large collection of core gaming experiences would allow them to secure console gaming into the future.
But a spokesperson for Sony said this morning that “we do not know where the rumor is coming from, but there is no such plan.” And a Take-Two spokesperson said the company does not comment on rumors or speculation. Sony’s comment is a rare denial of something that is outright false, and it nails the coffin on this rumor. Today, Take-Two’s stock price has fallen 3 percent to $93.16 a share.
Agreed!!No, they couldn't.
Wiping half your cash value off the balance sheet and replacing it with an asset is not 'easy' lol.
Well that doesnt really mean anything, how many times do spokemen come out and say something, then their company does the opposite the next day lol.Probably time to wrap this up for now.
https://venturebeat.com/2019/03/14/sony-kills-rumor-it-is-buying-grand-theft-auto-maker-take-two/
Well that doesnt really mean anything, how many times do spokemen come out and say something, then their company does the opposite the next day lol.
Having said that, anyone believing this had a chance of happening, was deluding themselves.
Even if it was Microsoft rumoured to be the one buying, i'd still think there would be zero chance. Its just too much money involved., and wouldn't be worth it, i mean what was it $14bil?, thats like what 300-400mil game sales at full price or something?. It would of took years for them just to get their money back.I remember when someone told me Microsoft would never let Bungie buy themselves out, you never know. My guess someone in TTwo started this, for obvious reasons, that baby is about to come back down to Earth. If you love it at $100, you're really going to love it at $60.