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

[mibu no ookami]

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.

Interesting that you focus on the IP that paramount doesn't have here instead of the ones that they do.

Mission Impossible
Star Trek
Top Gun
Avatar The Last Airbender

There is almost endless potential with the IP Paramount owns particularly as video games.

A 4 player co-op TMNT AAA game made by Santa Monica would slap. And we know they could deliver on the combat because they did it for God of War. The Axe in 2018 and the spear in Ragnarok are unmatched by any other game. Add in some stealth mechanics and the game would be next level. TMNT done right has massive potential.

Avatar has a lot of potential as well, a lot of things you can do here with the different bending styles. You don't even have to stick with the Aang story line. Another game with a lot of online GaaS potential if you could get the bending mechanics right.

Star Trek has always had the potential to be a top tier game with almost limitless options when it comes to genres. We've yet to really get a AAA star trek game.

Top Gun can be farmed out to Namco Bandai

Mission Impossible done by Naughty Dog would be perfect though I wouldn't mind Bend.

Insomniac with Spongebob would probably actually sell and significantly better than Ratchet and Clank.

 

[mibu no ookami]

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

T2 makes the most sense from a long term perspective, but would almost certainly require private equity and a stock deal.

It's a move that would be much easier for sony to do if it can rapidly grow in the next few years. The Paramount deal helps them do that.

 

[Swolf712]

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.

Likely regulatory concerns as well as the fact that Paramount is a bit of a management headache at the moment.

 

[Swolf712]

Interesting that you focus on the IP that paramount doesn't have here instead of the ones that they do.

Mission Impossible
Star Trek
Top Gun
Avatar The Last Airbender

There is almost endless potential with the IP Paramount owns particularly as video games.

A 4 player co-op TMNT AAA game made by Santa Monica would slap. And we know they could deliver on the combat because they did it for God of War. The Axe in 2018 and the spear in Ragnarok are unmatched by any other game. Add in some stealth mechanics and the game would be next level. TMNT done right has massive potential.

Avatar has a lot of potential as well, a lot of things you can do here with the different bending styles. You don't even have to stick with the Aang story line. Another game with a lot of online GaaS potential if you could get the bending mechanics right.

Star Trek has always had the potential to be a top tier game with almost limitless options when it comes to genres. We've yet to really get a AAA star trek game.

Top Gun can be farmed out to Namco Bandai

Mission Impossible done by Naughty Dog would be perfect though I wouldn't mind Bend.

Insomniac with Spongebob would probably actually sell and significantly better than Ratchet and Clank.

Sony Pictures prefers to license out their film IP rather than push PS to drop their original titles in favor of taking on licenses. That's why every Ghostbusters game, for example, has been made by third parties.

 

[mibu no ookami]

Sony Pictures prefers to license out their film IP rather than push PS to drop their original titles in favor of taking on licenses. That's why every Ghostbusters game, for example, has been made by third parties.

That's primarily because SIE hasn't been in a habit of licensing IP, which we've already seen a shift in with Spider-Man being licensed by Marvel.

Most of Sony Pictures current IP isn't worth making games out of.

 

[quest4441]

Aren't Sony sharing the purchase cost with apollo? It's not like they are fronting the whole 26 billion, most likely they pay half of that and Apollo takes the useless CBS in the portfolio, Sony keeps the paramount IP's and studio

 

[anonpuffs]

Aren't Sony sharing the purchase cost with apollo? It's not like they are fronting the whole 26 billion, most likely they pay half of that and Apollo takes the useless CBS in the portfolio, Sony keeps the paramount IP's and studio

Paramount has a lot of debt. Regardless of whether Sony is paying 50% or 100%, it's a lot of risk and every acquisition starts from an overpay. In this case Paramount's market cap is a little over 9 billion, yet Sony/Apollo are offering 26.

 

[Yurinka]

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.

It's $26B for the acquisition + $15B for the debt of Paramount, total of $41B (to be split with Apollo, Sony may "only" pay $10-20B). Then there will be acquisition related costs like retention bonuses for key people, and costs of firing thousands of people and other costs who are in Paramount eating the $10B in yearly gross profit they generate, out of $30B in yearly revenue they make.

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.

All public companies -even when don't want to sell- they are forced to listen and analyze any acquisition offer and to prove their stakeholders if it the acquisition was the best for their interests or not. But other than that, when they don't need to sell due to catastrophic finances (not the case of any big gaming publisher) if they don't want to sell they don't sell.

It would cost a shit ton of money but it's a great one in a lifetime opportunity, that would put Sony Pictures as market leader of the NA movie industry. In addittion to Sony Pictures, but create benefits to their gaming and music divisions.

It would be a great acquisition for Sony way more important and profitable than buying 3 or 4 top gaming publishers combined. But it may be too fucking expensinve, and on top of thaat may cause issues with regulators even if in theory they should approve it as they approved Disney buying Fox etc.

Aren't Sony sharing the purchase cost with apollo? It's not like they are fronting the whole 26 billion, most likely they pay half of that and Apollo takes the useless CBS in the portfolio, Sony keeps the paramount IP's and studio

Yes, Sony and Apollo join forces. Apollo very likely will keep for them CBS since Sony can't buy it due to being a foreign company.

WB is rumored to sell to so Sony might aswell wait

As I remember WB is way more expensive (around $40B) and has way more debt (>$43B). Sony can't pay over $80B for WB.

 

[Angie]

As I remember WB is way more expensive (around $40B) and has way more debt (>$43B). Sony can't pay over $80B for WB.

An investment like that would probably kill Sony.

There is no way to make that money back,and even less likely to make a profit

 

[Vertigo]

Share price falling when rumors like this exist is a trend that I’ve noticed. Also why I moved some money into Sony last week having been watching it daily for like the last 3 years. Best price since that Chinese opposition leader was murdered or whatever and it tanked prices for Netease etc for a min

Sony pictures getting their hands on the Taylor Sheridan shows would be a huge win.

I’d hope for a Star Trek revamp from the abomination it exists as today but I don’t really see Sony being better at that… maybe with just managing risk.

 

[Eternal_Wings]

I think the deal will not happen. I don't see the value in Paramount. They should better speculate on a WB divest from discovery in the future. Way better return or investment. Also something I noticed: Why didn't Sony buy Tolkien rights when they were up to sale in 2022? Sony insisted being a cheap ass, instead of taking this opportunity. Lord of the Rings has huge medial appeal. They could produce Movies, TV series and even Animated shows. Games would have been a bonus. Sony is always a slowpoke and 4 steps behind. Whole Sony board needs to be changed with competent people.

 

[Vertigo]

This decision has much less to do with gaming than it does with film and tv.

I’m indifferent to it happening or not.

For instance Sony just released Dark Matter on Apple TV (it’s pretty good so far too). They probably want their own service and would get that thru paramount plus.

Would def have major implications on adaptations of stuff not handed out to Amazon or HbO like god of war and tlou.

It bolsters their own services. Paramount plus is a much more appealing service than crunchyroll for most people.

Sony should’ve bought Toho.

 

[Yobo]

Paramount is shit hardly any good IPs

Not sure why Sony are considering it

 

[AllBizness]

That money would be better spent on Take Two tbh. Make GTA6 exclusive for 2 years then port it to PC to launch their new launcher with it and exclusive to their launcher bypassing Steam.

 

[Evil Aloy]

Interesting that you focus on the IP that paramount doesn't have here instead of the ones that they do.

Mission Impossible
Star Trek
Top Gun
Avatar The Last Airbender

There is almost endless potential with the IP Paramount owns particularly as video games.

Yeah Paramount is a very good purchase. You can make lots of great AAA games with Paramount's IP. A Mission Impossible stealth action game, A Star Trek sci fi RPG like Mass Effect, an air combat game with Top Gun.

 

[Yurinka]

An investment like that would probably kill Sony.

There is no way to make that money back,and even less likely to make a profit

True. Paramount instead would cost Sony a portion of $26B for the acquisition and debt because Apollo would pay a part of it.

Paramount generates $30B in revenue per year, which via different synergies with Sony Pictures, SIE and Sony Music could be improved. Same goes with the $10B gross profit per year they do, that now are being killed by operating costs: restructuring it removing redundancies they could get some billions in net profit per year directly from Paramount and indirectly at Sony Pictures, Music and SIE.

Meaning, pretty likely Sony would be able to recoup the acquisition in a around decade or so. And more importantly, this acquisition would put them as market leaders in another segment: movies, where now Sony and Paramount separatedly are top 4-top 5.

That money would be better spent on Take Two tbh.

No, Take 2 makes around $5B/year and Paramount around $30B/year.

The Paramount acquisition would highly change their position in the movie business, putting them as market leaders and would give Sony a lot of brands/IPs.

Getting Take 2 wouldn't almost change their gaming business: Sony is already the top dog, Xbox is already dying and Nintendo wouldn't be affected because doesn't have the key Take 2 games.

And the Take 2 acquisition would be more expensive than the Paramount one.

They probably want their own service and would get that thru paramount plus.

Both Paramount and Sony have multiple services, paid channels, etc. But most of the money of this business made by licensing movies and tv shows to the different paid tv channels.

Meaning, I think it would be positive for Sony to merge all their internal movie/tv show/documenttaries/paid tv channels/animation/anime available services and content (including the Paramount one) into a giant one where you can buy, rent or get bundled in a subscription all that stuff.

At least, the old catalog stuff they have that isn't signed by Netflix, HBO, Apple TV, etc. They could continue giving (temporal) exclusives to Netflix, Apple TV etc. but at the same time to also build their own huge platform.

 

[VillaiN]

Movies, shows subscriptions re going down iirc. Its obvious theres no enough market for all these competitors.

 

[mibu no ookami]

Movies, shows subscriptions re going down iirc. Its obvious theres no enough market for all these competitors.

Subscriptions for pretty much every major service have increased in the last year even as pricing and password sharing have changed dramatically.

Crazy how people convince themselves of things despite facts being the polar opposite.