The Official PlayStation Thread Vol. 5 | Wukong is AVAILABLE NOW.

[iheartboost]

It sounds like no Gran Delay 7?

 

[Bad Religion]

I mean.... yes, technically this was not done in response to Bungie buying Activision.

But it has been no secret for the last ... what, 5 years?... that Microsoft has been going door to door looking for acquisitions. To say that Sony, out of the blue, decided Bungie was the move after a long history of developing studios and acquiring 2nd parties with a long history of partnership would be hilarious.

This is the type of reporting that is so mindless and pandering it makes you question the site, not to mention the reporter.

 

[Hank Scorpio]

I see him in S&T forums.

Take-Two is it's on boss, they don't want to answer to Sony. If anything, I see Sony making GTA6 exclusive by throwing them a blank check.

If I was Sony, I would throw a ton of money to those Devs to make exclusives again. Part of the reason why PS2 did so well was because of the exclusive titles

I don’t think Sony has this type of money Microsoft does tho.

No company ever has that kind of liquid cash. They use leverage to make these acquisitions.

 

[Hank Scorpio]

I mean.... yes, technically this was not done in response to Bungie buying Activision.

But it has been no secret for the last ... what, 5 years?... that Microsoft has been going door to door looking for acquisitions. To say that Sony, out of the blue, decided Bungie was the move after a long history of developing studios and acquiring 2nd parties with a long history of partnership would be hilarious.

This is the type of reporting that is so mindless and pandering it makes you question the site, not to mention the reporter.

It doesn't work like this. It takes MONTHS (in some cases, even a whole year) to make an acquisition. This was in the works for a long time. MSFT just beat Sony to the announcement for their acquisition of ATVI.

 

[D Double]

Buckle up.

I mean.... yes, technically this was not done in response to Bungie buying Activision.

But it has been no secret for the last ... what, 5 years?... that Microsoft has been going door to door looking for acquisitions. To say that Sony, out of the blue, decided Bungie was the move after a long history of developing studios and acquiring 2nd parties with a long history of partnership would be hilarious.

This is the type of reporting that is so mindless and pandering it makes you question the site, not to mention the reporter.

I think its a response to people who would think this was a response because after looking at socials, there are a lot of people who believe this.
A lot of people don't stop to think how dropping 3.6 Billion can't be done in 2 weeks

I think the reason this purchase goes against their normal partner up relationship is because it's to plug a hole in their offerings.
No doubt Sony will be drawing on the expertise or even employees from Bungie to work on live services on other titles. Remember they tried to buy Leyou for this same reason before Tencent swooped in.



I do expect more left field acquisitions like this though. The Zenimax buyout opened the floodgates and Sony would've known about MS asking everyone for a buyout.

 

[brendasdeadbaby]

No company ever has that kind of liquid cash. They use leverage to make these acquisitions.

The companies you mentioned release yearly top charting games and will command Activision type money. Sony not throwing 75+ billion at 1 company to keep up with the Jonses

 

[Hank Scorpio]

The companies you mentioned release yearly top charting games and will command Activision type money. Sony not throwing 75+ billion at 1 company to keep up with the Jonses

Reason why Activision sold for $68b is because it's a publicly traded company with a market cap of a little over $61b. ATVI (Activision) currently is trading around $80/share. MSFT bought ATVI for $95/share to take private. Prior to the announcement, ATVI was trading around $65/share.

You just cant ask for $100b just because you "feel" that's how much you're worth. There's sophisticated financial modeling and processes Investment Bankers follow when these types of deals happen. That's what I was trying to get at earlier...Respectfully.

Sony would get the leverage from the Financial Sponsors (PE firms) as well as the Term Loans from Investment Banks to make such a deal, if Sony felt inclined to do so. I'm 100% certain there's bankers right now from GS and MS who are talking to Sony to make another acquisition. This is far beyond video game economics at this point. This is high finance now.

Similar to how the Healthcare system has evolved into huge corporations and/or Healthcare "Networks". A quick Google search will answer most of your queries and provide some helpful insight/perspective on acquisitions such as this one.

 

[iheartboost]

Sony buying Capcom, Square or even Namco wouldn't even matter. They all use to be exclusive to Sony at some point, so if it does, nobody would be surprised. These brands aint really pumping out games like they use too, or at the quality either.

Plus the biggest brand left that would go for sale would be EA I think. I dont think Sony would make that move.

 

[rolaholic]

Sony buying Capcom, Square or even Namco wouldn't even matter. They all use to be exclusive to Sony at some point, so if it does, nobody would be surprised. These brands aint really pumping out games like they use too, or at the quality either.

Plus the biggest brand left that would go for sale would be EA I think. I dont think Sony would make that move.

EA, Ubisoft or T2 just doesn't sound feasible at all

Would be terrible for the industry too

EA and MS tried this consolidation stuff at the turn of the millennium and it didn't work out for anyone, just ran formerly great studios into the ground

 

[Hank Scorpio]

Sony buying Capcom, Square or even Namco wouldn't even matter. They all use to be exclusive to Sony at some point, so if it does, nobody would be surprised. These brands aint really pumping out games like they use too, or at the quality either.

Plus the biggest brand left that would go for sale would be EA I think. I don't think Sony would make that move.

So, it really depends on what the accretion/dilution analysis looks like when you're considering deals like this. From my observations, EA is holding on to several liabilities which doesn't outweigh the economic/business impacts of such an acquisition. Sure, you get to have Madden, FIFA, Battlefield and The Sims, but you're also stuck with the other lesser known franchises. Not to mention, EA is trading close to $130/share. To take that company private, I'd assume you'd be paying close to $200/share, which would dwarf the ATVI purchase by MSFT. Not economically feasible.

EA, Ubisoft or T2 just doesn't sound feasible at all

Would be terrible for the industry too

EA and MS tried this consolidation stuff at the turn of the millennium and it didn't work out for anyone, just ran formerly great studios into the ground

Your last point makes the most sense. When studios get bought out by console manufacturers, the creative freedom sort of gets stifled. Sure, ATVI being bought out by MSFT is huge, but my initial reaction was concern over the quality of future titles. I personally don't believe studios should be bought out by console manufacturers. Could they have exclusive licensing? Yes, absolutely that is fine.

 

[Bad Religion]

It doesn't work like this. It takes MONTHS (in some cases, even a whole year) to make an acquisition. This was in the works for a long time. MSFT just beat Sony to the announcement for their acquisition of ATVI.

Right, what I am saying it wasnt this specific purchase, but the direction Microsoft has been moving for years that spurred the Bungie acquisition. .

 

[brendasdeadbaby]

Reason why Activision sold for $68b is because it's a publicly traded company with a market cap of a little over $61b. ATVI (Activision) currently is trading around $80/share. MSFT bought ATVI for $95/share to take private. Prior to the announcement, ATVI was trading around $65/share.

You just cant ask for $100b just because you "feel" that's how much you're worth. There's sophisticated financial modeling and processes Investment Bankers follow when these types of deals happen. That's what I was trying to get at earlier...Respectfully.

Sony would get the leverage from the Financial Sponsors (PE firms) as well as the Term Loans from Investment Banks to make such a deal, if Sony felt inclined to do so. I'm 100% certain there's bankers right now from GS and MS who are talking to Sony to make another acquisition. This is far beyond video game economics at this point. This is high finance now.

Similar to how the Healthcare system has evolved into huge corporations and/or Healthcare "Networks". A quick Google search will answer most of your queries and provide some helpful insight/perspective on acquisitions such as this one.

Take 2 and ea would cost more than activision. I just can’t see Sony spending that kinda money for yearly sports games that would probably still have to be multiplat unless they are going the game pass route.

 

[Ricky D]

What makes y’all think Take Two and/or EA wants to be purchased

 

[D Double]

Sony buying Capcom, Square or even Namco wouldn't even matter. They all use to be exclusive to Sony at some point, so if it does, nobody would be surprised. These brands aint really pumping out games like they use too, or at the quality either.

Plus the biggest brand left that would go for sale would be EA I think. I dont think Sony would make that move.

I dunno, I wouldn't sleep on the Japanese developers/publishers.
FFXIV is the biggest MMO out there right now. It dethroned World of Warcraft which is no small feat. They even had to stop sales because they ran out of server capacity.



Monster Hunter continues to print money with every release.

They were a bit lost with the HD transition and PS3 but things have changed
You will get more bang for your buck with the Japanese publishers IMO than EA.

Sony doesn't need to outbid MS, they just need an edge which they got with the big blockbuster titles on PS4. With that as the foundation they can layer on top and expand into other things.

Nintendo is on the sidelines eating popcorn because they know their model won't be disturbed even though they have the worst hardware, worst online service, worst looking games and so many other things people ignore just so they can play Pokemon.

 

[noskey]

What makes y’all think Take Two and/or EA wants to be purchased

Throwing a "B" into the price usually demands some consideration. But yeah I cant see either selling out when they're printing money already.

 

[1995]

Take 2 and ea would cost more than activision. I just can’t see Sony spending that kinda money for yearly sports games that would probably still have to be multiplat unless they are going the game pass route.

Sony like

 

[elpablo21]

 

[you go boy]

im just mad at EA for discontinuing fight night smh

 

[Hank Scorpio]

What makes y’all think Take Two and/or EA wants to be purchased

In most cases, companies seldom ever elicit a sale. Usually, it's not even within their radar to sell. But when you have a major investment bank + Private Equity firm + A serious buyer = almost always equates in a sale. Sometimes the numbers are just TOO big to pass up. (e.g. Heinz buys Kraft for $100b, Verizon buys Vodafone for $130b).

Usually most of these companies are pinned to a corner and forced to sell. They don't ever report stuff like that, but it's just esoteric fact of the business. Do I think Take 2 and EA will be bought? Not really, because the numbers are just TOO big and it would in-fact induce some sort of scrutiny on a govt level.

 

[iheartboost]

I dunno, I wouldn't sleep on the Japanese developers/publishers.
FFXIV is the biggest MMO out there right now. It dethroned World of Warcraft which is no small feat. They even had to stop sales because they ran out of server capacity.



Monster Hunter continues to print money with every release.

They were a bit lost with the HD transition and PS3 but things have changed
You will get more bang for your buck with the Japanese publishers IMO than EA.

Sony doesn't need to outbid MS, they just need an edge which they got with the big blockbuster titles on PS4. With that as the foundation they can layer on top and expand into other things.

Nintendo is on the sidelines eating popcorn because they know their model won't be disturbed even though they have the worst hardware, worst online service, worst looking games and so many other things people ignore just so they can play Pokemon.

Didn't know they surpassed WOW, now that's impressive. Sony and SquareEnix have always been in an entanglement way before they became SquareEnix and it was just Squaresoft. I would love to see another Ehergiz game, but that's a different topic. I remember years ago, back in the PS2/PS3 days, there was a rumor that Sony passed on buying Square because they were making exclusives for the PlayStation.

I miss the days when Square, Namco, Capcom, Tecmo, Konami etc. was running the video game industry, now you barely hear a peep out of these crews.

 

[mr j 858]

im just mad at EA for discontinuing fight night smh

There is a new one in development that keeps getting delayed by EA

 

[swendro]

Take 2 and ea would cost more than activision. I just can’t see Sony spending that kinda money for yearly sports games that would probably still have to be multiplat unless they are going the game pass route.

Take 2 is valued at 18 billion. I don't know how this **** works, but I don't think you'd have to pay 4x that to acquire them.

 

[T0INE]

im just mad at EA for discontinuing NBA Street smh

FTFY

 

[mr j 858]

Take 2 is valued at 18 billion. I don't know how this **** works, but I don't think you'd have to pay 4x that to acquire them.

Hate them or love tem R* is probably Take 2's biggest asset and is worth probably 9 billion alone.

EA tried doing a hostile take over buyout of R* and Take 2 back in 2008

Source:

EA's Take-Two Buyout Offer Turns Hostile (Update 2)

Take-Two may have rejected Electronic Arts’ first $2 billion offer to acquire the company, but EA is trying again, this time by reaching out directly to the shareholders in a hostile takeover bid. EA is offering to buy all outstanding Take-Two Interactive stock for $26 a share, which closed at...

www.wired.com

 

[mr j 858]