Random nonsense, but would Warner Discovery be a good target for Sony?

[Yurinka]

They are currently valued at ~$38B with about ~$45 debt.
Or would regulators 100% :

Sony doesn't have enough budget to acquire them. I think regulators would approve it. But if I would be Jimbo I'd buy only MK and Netherealm, I'd hire a handful key talented folks from Rocksteady and I'd hire some TT folks to create a kids focused new studio.

In addition to this, Sony already has a ton of big IPs (plus Marvel ones) and many teams super talented at creating more top new IP. More than to buy IP to using it in games, if they want to acquire it would be smarter to acquire instead talent to develop these IPs they already have and also top talent in top genres or game types/markets (like fighting,or eSports, or mobile, or kid friendly games, or AAA VR games) where their 1st party teams don't excel enough or where they don't have enough people.

Having said that, it feels insulting that they could be valued that high having even way more debt. With this debt they deserve to have almost 0 value until they highly reduce it.

 

[KiryuRealty]

Sony doesn't have enough budget to acquire them. I think regulators would approve it. But if I would be Jimbo I'd buy only MK and Netherealm, I'd hire a handful key talented folks from Rocksteady and I'd hire some TT folks to create a kids focused new studio.

In addition to this, Sony already has a ton of big IPs (plus Marvel ones) and many teams super talented at creating more top new IP. More than to buy IP to using it in games, if they want to acquire it would be smarter to acquire instead talent to develop these IPs they already have and also top talent in top genres or game types/markets (like fighting,or eSports, or mobile, or kid friendly games, or AAA VR games) where their 1st party teams don't excel enough or where they don't have enough people.

Having said that, it feels insulting that they could be valued that high having even way more debt. With this debt they deserve to have almost 0 value until they highly reduce it.

You don’t know much about how megacorporations use debt, do you?

Hint: All huge corporations are in debt. Lots of debt. It is a tax write-off and allows for manipulations of KPIs tied to bonuses and pay levels for employees.

The only time corporate debt is an issue is when a corporation can’t service the debt they have and can’t restructure it, leading to default.

 

[Satoru]

i

You don’t know much about how megacorporations use debt, do you?

Hint: All huge corporations are in debt. Lots of debt. It is a tax write-off and allows for manipulations of KPIs tied to bonuses and pay levels for employees.

The only time corporate debt is an issue is when a corporation can’t service the debt they have and can’t restructure it, leading to default.

Absolutely. Was just checking Apple, for example, who had at one point the biggest pile of money in any corporation afaik, and they still have around 50B cash on hand with a debt of around 100B.

A couple of quarters of profit without giving back to shareholders and they could know a decent chunk of their debt, but why? Especially when quantitative easing was a thing and companies were financing themselves at near zero interest rates.

They are also the only ones so far not to lay off, which is commendable.