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Ampere Analyst expects Sony to react to Xbox’s Activision deal with a major acquisition of its own

Codes 208

Gold Member
I still remember how buying bungie felt like a knee-jerk reaction to MS’s original bid last year (the year before? I forgot how long ago this shit started)
 

simdog461

Member
They can the streaming rights in the uk won’t stop it they’d just sell them to anyone if the other bidders
Possibly, but it's probably too much of a headache having to renegotiate the deal with the CMA.

There's a condition on the deal where neither company can invest in one another for 10 years.
 
That's only for this financial year though.
I don’t think that’s how cash on hand works. That’s how much the have in the bank. It’s not profit from the year. For instance, Microsoft had $111b before the Activision purchase as of June ‘23.
 
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DrFigs

Member
Sony as a whole has $14b to spend. Its not likely they will make a purchase higher than $3b
There was never a law that Sony could only spend 18 billion dollars or whatever. This was a number they decided on and could always change.
I don’t think that’s how cash on hand works.
Companies borrow money, they can sell stock. Acquisitions don't need to be made with cash.
 
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There was never a law that Sony could only spend 18 billion dollars or whatever. This was a number they decided on and could always change.

Companies borrow money, they can sell stock. Acquisitions don't need to be made with cash.
Borrowing money for a purchase such as a studio/publisher is a dumb move and would incur interest over time or make them have to pay a debt. Sony won’t be making any huge investments in the near future. Only smaller ones. Which is a smart move for them.
 
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DrFigs

Member
Borrowing money for a purchase such as a studio/publisher is a dumb move and would incur interest over time or make them have to pay a debt. Sony won’t be making any huge investments in the near future. Only smaller ones. Which is a smart move for them.
Taking on some debt or selling stock to finance investments is a normal part of doing business for every other company other than Microsoft.
 
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simdog461

Member
Borrowing money for a purchase such as a studio is a dumb move and would incur interest over time. Sony won’t be making any huge investments in the near future. Only smaller ones.
That's literally how M&A's happen though.

You run the numbers and if the investment gives you a positive return (including interest payments), and it meets the company's requirements for how big of an ROI is required, it's a good purchase.
Right now, interest rates are quite high, so they'd want to borrow as little as possible, so selling stocks or assets (like how they are actively looking to spin off their financial arm) would be key.

Sony is a very very asset heavy company for their size. They have around 1/2 the total assets that Microsoft does, despite being worth over 20x less on the stock market.
 

UltimaKilo

Gold Member
Square is garbage. Maybe for 1bn or less.

Capcom, CDPR and EA only relevant stuff that worth the money.
Square loses so much money, nobody is going to take that company on.

CAPCOM would be interesting for SNY.

Sony doesn’t have the money to acquire EA.

CDPR is probably, if I were at Xbox, what I would make a move on.

Sony’s other option is to open up new studios and acquire smaller companies.
 

skit_data

Member
Great, this consolidation of the industry means that in the end more multiplatform games becomes bricks in the strategy to have some kind of pull factor for consoles.

Either there will be some kind of "mutually assured destruction" policy established to avoid people leaving the console space for PC due to console having fewer games overall or it will lead to a faster decline in competitors in the space. Just great.
 
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That's literally how M&A's happen though.

You run the numbers and if the investment gives you a positive return (including interest payments), and it meets the company's requirements for how big of an ROI is required, it's a good purchase.
Right now, interest rates are quite high, so they'd want to borrow as little as possible, so selling stocks or assets (like how they are actively looking to spin off their financial arm) would be key.

Sony is a very very asset heavy company for their size. They have around 1/2 the total assets that Microsoft does, despite being worth over 20x less on the stock market.
Yeah but not super long ago, Sony wasn’t doing so hot credit-wise. Either way. Why put Sony in debt when they could comfortably purchase a well thought out acquisition? Sony is successful in the gaming market already, they don’t NEED to acquire anyone. But if they did, there’s no reason to go in debt .
 

simdog461

Member
Yeah but not super long ago, Sony wasn’t doing so hot credit-wise. Either way. Why put Sony in debt when they could comfortably purchase a well thought out acquisition? Sony is successful in the gaming market already, they don’t NEED to acquire anyone. But if they did, there’s no reason to go in debt .
They don't need to acquire anyone today, it's about future proofing.
You're better off making these moves from a position of strength rather than a position of desperation.

If they look back in 10 years time when microsoft potentially owns: Call of Duty, Minecraft, all blizzard IP, GTA, Red Dead, the 2K games, Elder scrolls, fallout + more, it will be too late.

And you're right, they could sell off more assets/ stocks to buy someone debt free. But usually it's a combo.

Say for a $30bn purchase- 1/3 cash, 1/3 stock and 1/3 debt ($10bn in debt isn't a lot for a company of Sony's size).
 

poodaddy

Gold Member
I truly do think Sony will get Square at some point. Don't know that it will be soon, but I honestly believe it will happen at some point. I'm somewhat ambivalent on whether that's ultimately good or not, but I got a feeling that it's gonna happen.
 

StueyDuck

Member
Consolidation yaaaaay.

Sony don't have a casual 70bil to drop however so I think these people's dreams of Sony trying to compete won't happen to the extremes people think.
 
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simdog461

Member
None of their actions shows that they care. PlayStation doesn't see Xbox as a serious competitor anymore because of the huge gulf between the two, which keeps growing.
I think square is a horrible purchase.

Yes they have final fantasy, but not a lot else that generates mega sales.
 

Heisenberg007

Gold Journalism
I think square is a horrible purchase.

Yes they have final fantasy, but not a lot else that generates mega sales.
Yeah, I don't think Sony will prioritize SquareEnix either. I think their next big acquisition will be a Korean hybrid publisher that gives them content across console games, F2P GaaS, mobile, and PC.
 

Heisenberg007

Gold Journalism
As a PC gamer, it's wonderful that that will have no effect on me <smugface>
Animated GIF
 

Heisenberg007

Gold Journalism
Consolidation yaaaaay.

Sony don't have a casual 70bil to drop however so I think these people's dreams of Sony trying to compete won't happen to the extremes people think.
The thing most ignore is that it is not Sony that's trying to compete. Sony is comfortably sitting on the #1 spot with 0 risks and continuing to grow. Spider-Man 2, their next release, will be one of the biggest launches of the 9th generation.

It is Microsoft that's trying to compete and, therefore, buying companies in a desperate attempt to do so.
 

sinnergy

Member
The thing most ignore is that it is not Sony that's trying to compete. Sony is comfortably sitting on the #1 spot with 0 risks and continuing to grow. Spider-Man 2, their next release, will be one of the biggest launches of the 9th generation.

It is Microsoft that's trying to compete and, therefore, buying companies in a desperate attempt to do so.
MS doesn’t care, has enough money. I don’t think they are desperate at all, they like to be in gaming and want to grow , so that that future is secure.
 
Depends on their new playstation head hancho after Jimbo exits. They probably will gobble up a japanese publisher if not only to secure their stranglehold on the console markets. I dont know if its still true but playstation is probably the only pillar making fuck you money for sony.
 
None of those would move any sort of needle. Call of Duty alone is more valuable than all those publishers combined.

They need Take 2 to actually reply. GTA is the only thing that would offset COD.
Capcom can probably go toe to toe with cod. Monster Hunter alone is a system seller that pulls in the hardcore and casuals. Add Resident Evil, Devil May Cry and Street Fighter and you got yourself the best console for japanese diehards.
 

simdog461

Member
Capcom can probably go toe to toe with cod. Monster Hunter alone is a system seller that pulls in the hardcore and casuals. Add Resident Evil, Devil May Cry and Street Fighter and you got yourself the best console for japanese diehards.
Nah the only game that can consistently go toe to toe with COD is GTA.
 
True. That’s how MS got ABK after all.




In the case of most devs sure, I don’t think MS will care enough. But we are talking about T2…. GTA. MS would not let that one slip through their moneyed up fingers.
Any attempt by MS to buy T2 would be immediately blocked by the regulatory bodies. Making 2 large purchases like this in a short period of time would draw unwanted negative attention. As it stands right now, if the government were doing its job properly, MS should be under antitrust suits for Office and Windows.
 

John Wick

Member
True. That’s how MS got ABK after all.




In the case of most devs sure, I don’t think MS will care enough. But we are talking about T2…. GTA. MS would not let that one slip through their moneyed up fingers.
You keep on blatantly forgetting that the landscape has changed. How are they gonna push this deal through? There will be massive opposition to this. They won't be allowed to own COD and GTA.
 

Sanepar

Member
Any attempt by MS to buy T2 would be immediately blocked by the regulatory bodies. Making 2 large purchases like this in a short period of time would draw unwanted negative attention. As it stands right now, if the government were doing its job properly, MS should be under antitrust suits for Office and Windows.
How naive u need to be to believe in regulators after AbK deal? They will just need to pay the "right price" to buy it. Ea ans t2 are on ms pocket. Just a matter of times.
 

Jigsaah

Gold Member
At this point, why the fuck not...Microsoft broke the seal...time for Sony to piss all over the walls. Sony goes for EA...let's see it. I need another 1600+ page thread about the nuances of acquisition law.

The hypocrisy will be delicious.
 

mejin

Member
Sony can't burn money for decades like MS. But they need to secure some iconic ips for PlayStation.
 

Godot25

Banned
They need something.

Buying Bungie ended up being the most toothless acquisition of all time.
Maybe because that acquisition was not about "having a tooth" in fantasy land of console wars.
It was to give Sony expertise for live service games for their live service games push. Yes, Sony could "organically" create live service studio, but it would take years or even decades to get them where Bungie is today.

Thanks to Bungie, Sony did not embarrass themselves with TLOU "Factions 2" and they also canned Deviation new project that probably also didn't look so hot.

So that purchase did exactly what Sony was hoping it would do.
 

Flutta

Banned
They need something.

Buying Bungie ended up being the most toothless acquisition of all time.
Eh we don’t know that yet. Let’s wait till Marathon and their other IP releases first.

Regarding the topic at hand i don’t believe Sony can go for the big pubs like T2 or EA to go toe and toe with ABK and Beth, maybe in the size of SE or something of that nature. Imo they should go for the smaller studios instead it’s more cost effective that way.
 
They don't need to acquire anyone today, it's about future proofing.
You're better off making these moves from a position of strength rather than a position of desperation.

If they look back in 10 years time when microsoft potentially owns: Call of Duty, Minecraft, all blizzard IP, GTA, Red Dead, the 2K games, Elder scrolls, fallout + more, it will be too late.

And you're right, they could sell off more assets/ stocks to buy someone debt free. But usually it's a combo.

Say for a $30bn purchase- 1/3 cash, 1/3 stock and 1/3 debt ($10bn in debt isn't a lot for a company of Sony's size).
Sorry, no , this won’t happen. Not a single purchased Microsoft has made was done this way. Sony won’t do it either. Just like at Sony’s purchase history. They bought Bungie for $3.6b which was their biggest expense in some time.

 
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Gavon West

Spread's Cheeks for Intrusive Ads
This guy expects Sony to make a huge purchase as impactful as ABK but, Sony were given the same opportunity when ABK pitched the deal to them and they denied it. Yet, Sony is gonna take another huge deal as impactful as ABK.

Um....okay?
 

Nankatsu

Member
At the end of the day they are just gonna buy Kojima's Studio :messenger_tears_of_joy:

Capcom would be huge, but I don't see it happening. They output 3rd party bangers after bangers and are financially healthy.
 

Gavon West

Spread's Cheeks for Intrusive Ads
If I really need source for information that Sony was in the "mix" to buy ABK?

Yeah. I want it...
I did some research and it doesn't look like Sony was ever offered the deal. Not to sound sarcastic but, they couldnt afford it. My apologies. I assumed since Sony and Activision were so such bed fellows, Sony would have been offered the deal by default. Guess that wasn't true. Again, my bad.
 

Godot25

Banned
I did some research and it doesn't look like Sony was ever offered the deal. Not to sound sarcastic but, they couldnt afford it. My apologies. I assumed since Sony and Activision were so such bed fellows, Sony would have been offered the deal by default. Guess that wasn't true. Again, my bad.
I mean. Sony of course could "outbid" Microsoft same way that EA outbid Take-Two for Codemasters (Take-Two even announced purchase of Codies, but then EA offered more). But it was not a realistic scenario. There were maybe 2 companies that could outbid Microsoft for ABK - Apple and Google.

From what I understand, when this "sexual harassment" stuff happened and shares of ABK plummeted to 58$, Spencer started talking to Bobby and when he was willing to sell, he talk to Nadella to get it through Microsoft board.
 
From what I gather, the Zenimax acquisition didn't move the needle by any observable margin. Why should Sony focus on publishers? Go for independent studios instead and try to aim for those Microsoft is doing partnerships with. Asobo & VicariousVisions are great candidates, especially the latter when it comes to support studios(which are beneficial for Sony 1P). They lack Rpg's, so trying for Eidos Montreal would be great since Embracer is open for selling some of their own. Why not aim for Crystal Dynamics as well, they'd be a great addition and having the Tomb Raider next to Nathan Drake? Killer combo. Their roots are Japanese, so maybe they can cut Kadokawa a deal they can't refuse and nab FromSoft as well. Remedy is a good candidate too, so why not go for them as well? Perhaps even try to go after CDPR, but I doubt they'd accept. Honestly, I was hoping the gaming industry wouldn't come to this, but here we are. Sony will be forced to respond, keeping their arms crossed isn't really an option at this point.
 
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I mean. Sony of course could "outbid" Microsoft same way that EA outbid Take-Two for Codemasters (Take-Two even announced purchase of Codies, but then EA offered more). But it was not a realistic scenario. There were maybe 2 companies that could outbid Microsoft for ABK - Apple and Google.

From what I understand, when this "sexual harassment" stuff happened and shares of ABK plummeted to 58$, Spencer started talking to Bobby and when he was willing to sell, he talk to Nadella to get it through Microsoft board.
Meta tried to outbid Microsoft for ABK, but were out of their league.
 
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