Sony shareholders aren’t confident on the Paramount buyout why? Is a gaming publisher a better acquisition to make for far less to gain prominent ip

[Neversummer]

Sony shares fall as offer for Paramount spurs financing concerns

Investors are worried because the $26 billion proposal is larger than the Japanese electronics company's cash holdings.

www.japantimes.co.jp

Is Sony shareholders worried about the buyout of Paramount being a bad acquisition or is it that there worried of potential financial problems w Paramount or possible regulatory problems?

Is Paramount a good buy? I can only see Paranount being a good buy if Sony sells half of it that they don’t need like cable section cbs mtv etc & keeping the studios & movie rights also owning tmnt/nickelodeon. And by selling half of it they can get back some of the money for future investment like buying Hasbro who owns the Transformer, GIJOE, Monopoly franchise since Paramount don’t own them.

 

[Jim Ryan]

Yes, I've seen people discuss Has to here.

Seems like a more valuable purchase, since it has IPs for movies, gaming and also toys.

It would really fit the direction of Sony overall as a company.

 

[shrike0fth0rns]

Sony shares fall as offer for Paramount spurs financing concerns

Investors are worried because the $26 billion proposal is larger than the Japanese electronics company's cash holdings.

www.japantimes.co.jp

Is Sony shareholders worried about the buyout of Paramount being a bad acquisition or is it that there worried of potential financial problems w Paramount or possible regulatory problems?

Is Paramount a good buy? I can only see Paranount being a good buy if Sony sells half of it that they don’t need like cable section cbs mtv etc & keeping the studios & movie rights also owning tmnt/nickelodeon. And by selling half of it they can get back some of the money for future investment like buying Hasbro who owns the Transformer, GIJOE, Monopoly franchise since Paramount don’t own them.

Right now buying any big publisher is a terrible idea. After seeing how abk and zenimax hurt Xbox ppl really should have learned a lesson.

 

[Neversummer]

Right now buying any big publisher is a terrible idea. After seeing how abk and zenimax hurt Xbox ppl really should have learned a lesson.

I think the problem & isn’t a fair comparison is that MS bought these publisher for the platform & subscription (gamepass) which has flatline. Xbox gamers don’t buy games & gamepass isn’t growing so making games exclusive after buying a publisher is calling for disaster. PS doesn’t has that problem

 

[Polyh3dron]

I don't think Paramount has enough bankable IP or established infrastructure to warrant whatever price they will end up selling for. IMO Sony should back out and let the Ellison boy play with his Monopoly money

 

[arvfab]

I'd rather prefer current Sony doesn't buy any publishers. Current PlayStation couldn't handle them.

 

[Shmunter]

There are no publishers that match the Sony watermark of prestige releases.

Any such purchase would dilute the brand.

Follow the tried and true model of creating synergy with individual dtudios. If dating them works out, put a ring on that finger.

 

[Nhomnhom]

Paramount charges extra here to watch Paramount+ on your TV instead of your phone. The fact that Sony even considered this shows that the current leadership is mental.

If it was Warner at least I could understand why they would be tempted by it but Paramount? Way too stupid.

Sony has no incentive to buy any publisher now that they share all their games with PC, they would be spending money to grow just for the sake of it.

 

[mibu no ookami]

Sony shares fall as offer for Paramount spurs financing concerns

Investors are worried because the $26 billion proposal is larger than the Japanese electronics company's cash holdings.

www.japantimes.co.jp

Is Sony shareholders worried about the buyout of Paramount being a bad acquisition or is it that there worried of potential financial problems w Paramount or possible regulatory problems?

Is Paramount a good buy? I can only see Paranount being a good buy if Sony sells half of it that they don’t need like cable section cbs mtv etc & keeping the studios & movie rights also owning tmnt/nickelodeon. And by selling half of it they can get back some of the money for future investment like buying Hasbro who owns the Transformer, GIJOE, Monopoly franchise since Paramount don’t own them.

I mean if you read it, you would see the concern is that they don't know how sony is going to pay for it since the amount is more than they have cash on hand.

But no one has details on what percent of the 26 billion Sony will pay for or what assets Sony/Apollo will keep vs sell.

I think it's a tremendous buy and far more value than worth than any publisher they could get at this point.

Outside of T2, there isn't a single publisher that they could buy that would significantly transform them as a company.

There are a handful of studios that should interest them.

Capcom
CDPR
Kadokawa/FromSoftware

But prioritizing internal development probably matters the most right now.

 

[Wing84]

It's crazy that people think Sony should put all their eggs in the gaming basket.

 

[arvfab]

It's crazy that people think Sony should put all their eggs in the gaming basket.

Nah, the problem is, they are only putting a few broken ones in there currently.

 

[mibu no ookami]

It's crazy that people think Sony should put all their eggs in the gaming basket.

Growth in gaming is slowing down, great time to double down said no one ever...

Pretty much every game coming out in the next few years is going to hit playstaiton, but what fanboys want is exclusives.

 

[Box]

It's crazy that people think Sony should put all their eggs in the gaming basket.

Gaming is their most profitable division though, Sony Movies have been flops after flop. Morbius and madam web were absolute rubbish

 

[Nhomnhom]

It's crazy that people think Sony should put all their eggs in the gaming basket.

No, they should bet on fucking Paramount...

hey, maybe Sony is the one that is going to beat Netflix, never say never. Just like they are going to beat all the other dozen of electric car manufactures with the Sony/Honda Afeela.

If it's between betting on Sony Picture and Paramount, hell yea, PlayStation is a much better place for them to invest on.

 

[thicc_girls_are_teh_best]

There are no publishers that match the Sony watermark of prestige releases.

Any such purchase would dilute the brand.

Follow the tried and true model of creating synergy with individual dtudios. If dating them works out, put a ring on that finger.

Take-Two/Rockstar does with just one IP, GTA. Two if you count the Red Dead series. But they aren't on the table for an M&A.

I agree with others tho saying buying a games publisher is probably not for the best. Nothing should be stopping them from doing strategic partnerships for game co-development and co-funding (in return for exclusivity) with 3P devs & pubs, though.

If the Paramount deal went south, it'd be nice if SIE could redirect some of those funds towards 3P dev/pub investments, share purchases, and co-dev/co-funding deals for new games/exclusives including leveraging legacy IP. And get back to more internal AA development.

 

[mibu no ookami]

Take-Two/Rockstar does with just one IP, GTA. Two if you count the Red Dead series. But they aren't on the table for an M&A.

I agree with others tho saying buying a games publisher is probably not for the best. Nothing should be stopping them from doing strategic partnerships for game co-development and co-funding (in return for exclusivity) with 3P devs & pubs, though.

If the Paramount deal went south, it'd be nice if SIE could redirect some of those funds towards 3P dev/pub investments, share purchases, and co-dev/co-funding deals for new games/exclusives including leveraging legacy IP. And get back to more internal AA development.

It makes zero sense for Sony to spend any money on 3rd party development/exclusivity deals for the rest of the generation.

They've already beaten Microsoft. All you're doing by extending deals to companies is lowering your operating income and driving margins lower, which then need to be made up in some other way that generally sucks for consumers.

Any money they have should be used on lowering the price of the PS5.

 

[arvfab]

which then need to be made up in some other way that generally sucks for consumers

Like porting games to PC?

 

[anonpuffs]

Sony's shares dipping isn't a sign of investor unconfidence. It happens every time a large merger/acquisition is announced. This is due to having to pay above market rate to acquire the target.

 

[Neversummer]

Paramount charges extra here to watch Paramount+ on your TV instead of your phone. The fact that Sony even considered this shows that the current leadership is mental.

If it was Warner at least I could understand why they would be tempted by it but Paramount? Way too stupid.

Sony has no incentive to buy any publisher now that they share all their games with PC, they would be spending money to grow just for the sake of it.

Yuh I agree, Sony would ultimately get Sonic, Transformer, GIJOE movie rights & Nickelodeon such as SpongeBob, TMNT. There’s a few other franchise but the 3 movie franchise I name Paramount don’t even own they would have to cough more $ to buy Hasbro & own Transformer & GIJOE Sega owns Sonic. It only makes sense if Sony scraps Paramount & sells part to get back some $ while keeping the prominent ips & even then it will take Sony 1-2 years for Sony to scrap Paramount while they could’ve bought WB.

WB is rumored to sell to so Sony might aswell wait or just save the money. Atleast WB owns many of its franchise & its franchise has more potential across movie, animation, tv shows, games, mobile, parks WB just has more potential like making a looney tunes park or a dc park. WB franchise Sony could get include DC, Harry Poter, Monster Verse, Looney Tunes, Scooby Doo, Tom & Jerry, Games of thrones, Ben 10, Mortal Kombat etc if you wanted to make content whether it was games, tv shows, animation, movies parks whatever it was WB is the go to. It’s actually crazy how incompetent WB is with the franchise they own there sitting on a gold mine.

WB would help Sony & PS while Paramount would be a 50/50 helping Sony.

I also saw someone say if they bought Paramount they would have SpongeBob a franchise w potential in games like kids don’t care about SpongeBob games they like Roblox & Fortnite. SpongeBob in tv shows & animation/movies could have potential but not in games. Ain’t nobody gonna buy a SpongeBob game for $70 no matter how good it is. Maybe high potential with TMNT games & if Sony owned Transformer there’s possible high potential.

 

[Neversummer]

Take-Two/Rockstar does with just one IP, GTA. Two if you count the Red Dead series. But they aren't on the table for an M&A.

Take 2 is on the table Struas Zelnick said if the deal was right he would be open at the end these are public companies that will take the easy route for guarantee money selling your company & getting you & the shareholders a big pay check would make any of these companies at the very least hear offers & conversations.

But more importantly Take 2 acquire Zynga & PlayStation can use a mobile division that can translate PlayStation ip to mobile games like you’ve seen Activision do with Diablo & COD Mobile.

Almost every major publisher Activision Kyng, EA Glu, Take 2 Zynga, Saudi Arabia Scopely, Tencent SuperCell, Sega Rovio, essentially everyone except PlayStation has acquired a “notable” mobile publisher. I would say Hoyoverse would be a good buy but there tied to China & there’s not many mobile publishers left for Sony to acquire