Fulcizombie
Banned
Yep, too bad MS isnt releasing a remake of an xbox360 game or a single player expansion of Gears5 for us to enjoy.
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Ubisoft shares rise amid takeover from Google, Amazon and Sony??
- Thread starter Rhazer Fusion
- Start date
Shubh_C63
Member
How big is CDPR compared to Sega, any idea ?
I think they were valued at 10 billion.
duhmetree
Member
Journey
Banned
30yearsofhurt
Member
A $100b company that owns a bank can't raise $5b to buy a majority stake in a public company?
Yeah nah, I don't think you know what you're talking about. This would be easy for them to do.
massivekettle
Member
Acquiring a majority stake is one thing (and would cost quite a bit more than $5bn, seeing as it would materially drive up the price beyond the current bid-ask), but acquiring Ubi outright would likely cost between $15-20bn, given control premium and adjusting for FX.
Not an immaterial sum for Sony, or any other potential acquirer for that matter.
SurprisedPikachu
Member
As much as I shit on Microsoft in my spare time, I'd actually welcome them to buy Ubisoft. It seems fitting and quite honestly I've heard only good things about Microsoft from my friends, so I am more willing to accept that over Amazon or Google.
VincentMatts
Member
Sony cant afford Ubisoft. The others can. My money is on amazon. They were also after Bethesda.
MoreJRPG
Suffers from extreme PDS
Where in the world are you pulling these figures from? And net worth does not equal on hand cash.
And the bold is truly ironic.
30yearsofhurt
Member
It's now sort of inevitable. For Sony staying out of other publishers business has been good for all concerned but now it may prove fatal if MS stockholders tolerate Nadella and Spencer splashing the cash reserves on the unfancied xbox division.
If I were Sony I would be looking to get 50% stakes in Capcom, Sega Sammy and Square at least. I'd also be looking at Take 2 and EA. The first 3 would be $10b for 50% stakes. Add 20-30% as a premium for buyout bids. EA and T2 would be $20-25b and $10-13b respectively for 50% stakes.
$10b would be nothing for Sony. $40-50b is not doable, or at least not sellable to shareholders for a business arm that would make $2-3b in a good year. Their only saving grace is that it's very hard to buy out publicly listed Japanese companies because of the intertwined ownership structures.
I never said it does. But Sony can easily issue debt to raise capital. How much is another matter.
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Fulcizombie
Banned
It would take much more to buy a majority stake in Ubisoft, the minute Sony (or anybody) started buying shares the value of the shares would go through the roof. Oh and it wouldn’t be easy at all for a company the size of sony to buy Ubisoft because you can bet that a Ubisoft potential buyout would ignite a bidding war (and why wouldn’t it, that would be more than welcome by Ubisoft shareholders) and Sony simply wouldn’t be able to even compete in that case.
VincentMatts
Member
They arent. Its wishful thinking.
However, them going in on it with another partner wouldn't be impossible. But I doubt it.
The Japanese electronics and entertainment conglomerate reported group profits down by 36% to $5.34 billion (JPY582 billion) for the 2019-2020 financial year that ended in March. Group revenues were down 5% at $75.7 billion (JPY8. 26 trillion)
Their entire profits are less than what MS paid for Bethesda if this is true.
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Fulcizombie
Banned
Hahaha at Ms shareholders «tolerating» Nadella on anything (the man that took a slow moving behemoth and elevated it to new heights) or Sony giving billions of cash left and right for buying....stuff. Sony looking at EA (a company with almost half the market cap of the entire Sony corporation)
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30yearsofhurt
Member
The market cap of Ubi is only about 10b euros. Assuming you want half that you would be going in with 7-8b at least. Then you would be schmoozing the Guillemot family and Tencent.
Clear
CliffyB's Cock Holster
Revenue down 5% isn't significant, as that could be accounted for by Playstation falling off its sales peak due to it being a year without huge tentpoles like Spiderman or GoW (they issued a profit warning specifically about that earlier that FY). And profit down is just a symptom of expenditure rising as expected preceding the launch of their next-gen systems.
$75b in annual revenue is still a lot.
Fulcizombie
Banned
Revenue means nothing. You can have losses while boasting big revenue. MS posted 45 billion net income for FY 2020. 2010-2020, Sony net income 10 billion, MS net income 250 billion.
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Wildstar75
Member
Google or Amazon buying any major game company will piss me off. I will NOT run to their crappy platforms to play no matter what.
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VincentMatts
Member
Honestly i feel like the next big gaming purchase will be from them. I think thats why MS didnt wait. They know that Amazon will absolutely throw money around like its nothing.
And MS missed out on twitch and i dont think they wanted to miss out again.
I find it funny that Amazon announce Luna the week MS buys Bethesda... Were amazon hoping to make that purchase too and announce it at the same time as Luna?
Beware of amazon people, if they buy 3rd parties, you can officially say goodbye to "sharing" those games like MS do.
30yearsofhurt
Member
Their problem is that some divisions like mobile and pictures post losses to drag the net revenue down.
Their pictures portfolio alone is estimated to be worth over $25b but has barely made any money for over a decade. They're known for backing big budget flops.
Imagine being forced to play the next From Software title through streaming...
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Alebrije
Member
Konami still huge despite their lack of games, they were right going to Pachinko mode...it delivers.
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Kenpachii
Member
Kinda afraid of that really.
Clear
CliffyB's Cock Holster
Thats an argument against pushing further investment into those division, not the one that's been the main profit driver!
The important part if you look at the financial report is the 42.284% gain YoY in cash and equivalent reserves.
Note: Not that I think buying Ubi would be a good fit for them regardless.
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30yearsofhurt
Member
Imagine being forced to play the next From Software title in chrome... there's not enough memory in the world to handle that.
These numbers are mostly accurate.
Sega Sammy is just under $4b
Kadokawa FP is ~$2b
Warner Bros games was valued at ~$4b
Totally agree but they need to look at putting a broom through some of their divisions.
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Bryank75
Banned
That may be part of the plan..... hahaha
Bruno_Arrais85
Member
what a waste of money
Bryank75
Banned
Funny that people are so afraid of Amazon.... Sony have quite a bit of cash and a better debt ratio.... so you should just be afraid of any of them buying out publishers.
Amazon doesn't have the connections or regional links in Japan to buy any of the major publishers there. Large amounts of stock are still owned by founders...like Square, the founder has 20%, while other Japanese corps and funds have other large amounts.
StormCell
Member
Kinda don't want to lose Ubisoft as a multiplatform-supporting third party, but if someone was going to buy them I kind of wish it would be Nintendo. Ubisoft does some of its best work on Nintendo hardware, and they own some IP's that would only further bolster Nintendo's library and also give it wider diversity.
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