Sony's future and possible studio/publisher acquisitions

KnittedKnight

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13 Jul 2022
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Any studio that says it's open to be acquired already lessens their negotiating position out the door. Negotiation leverage 101. The only thing you should do is play around the edges, specially if you've been approached and are currently in some form of negotiation.

The response was competent, perhaps even truly "factual". In quotes cause there is always a price. If say, MS, Apple, Google, Amazon or Sony were to approach tomorrow with a $3 billion bag will they say "not interested"... think again. Not that they're worth $3 billion but it carries the point of the draw.
 
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Yurinka

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Have Capcom made a statement at all? I would guess being fam owned and selling gangbusters, it's just not a thought to them financially, incentives would have to come in other ways like wider Sony media synergies?
As I remember teh most similar thing they have is this M&A Policy they updated a couple years ago. But talks more about acquisitions they make -like the recent Swordcane outsourcing studio- instead than the possibility of being acquired:

"Capcom must increase sales in the Consumer Online Games Business outside Japan, where the market for these games is larger and there is much more growth potential, in order to maintain growth. Acquisitions and partnerships are one of the important strategies for increasing our market share overseas. We aggressively seek the opportunities of acquisitions and partnerships for the purposes of creating game content with universal market appeal and acquiring technologies and know-how required for our “Single Content Multiple Usage” strategy.

However, a merger with a large Japanese game or toy manufacturer is not being considered as a serious option since it would not make a significant contribution to growth in our overseas sales. Furthermore, this type of merger also poses the risk of limiting our activities involving the licensing of game content.

We have never made any takeover bids (TOB). We understand that the human resources that create content are the most important assets in the entertainment industry. With a TOB, employee departures could significantly erode the value of the acquired company. We believe choosing an appropriate partner company that complements our strengths will lead to subsequent successful acquisition and contribute to the growth of our business. The first objective, therefore, is to form partnerships that meet our needs as well as those of our partners."
https://www.capcom.co.jp/ir/english/management/ma.html

Maybe in some Q&A with investors said they aren't interested on selling the company, but I don't remember them talking about it. What I can tell you is that they never said to be interested or even considered to be acquired or to merge.

Saudis have bought a stake in Capcom.
Aw shit.

Edit: wait, does that ensure Capcom remain multiplatform at least?
Saudis bought a tiny minority stake, doesn't mean Capcom will sell the company. It only means Capcom is a public company, so every day someone buys or sells a tiny portion of this or that company. In this case the saudi family is interested on investing in gaming so they bought a tiny stake in many big gaming companies, which doesn't mean they plan to buy them.

Capcom and the family of the CEO plus the CEO's company Crossroads own like 40% of Capcom's shares. Then allied Japanese public funds and asset management companies own over 10% of Capcom shares. Meaning, the CEO controls the company directly or indirectly controlling the majority of the company shares. So he decides if he (well, the management board) wants to sell or not.




This is why Sony not buying big AAA studios. Playstation Brand honestly seems neglected

Why don't you just buy

Larian Studios
Remedy
Ember Lab
CD Projekt Red
Kojima Productions
Platinum Games
From Software

Sony?

When Sony said they weren't going to make acquisitions in the short term they weren't talking only about AAA games or about gaming. They were talking about any kind of acquisitions. Sony won't buy anyone this fiscal year.

Sony won't buy this company, or at least not in at least around 2 or 3 years. They said they'll continue with acquisitions in the mid to long term. Which aligns with when they estimate to have branched out and sold 80% of their bank division to get extra cash for acquisitions.
 
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ksdixon

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Welp, sounds like Capcom aren't at the selling table at all, from that info. Thanks Yurinka.

So now, where it makes sense, what's the sales breakdown of, or the active playerbase of Capcom's games by console platform? Is it "worth" it to be dragged down by XBSS, or "code to the metal" and use all the tricks on a PS/PC?

As long as Capcom at least stay multiplatform; but if they were to sell/merge into exclusitivity status, I'd certainly hope it was Sony for all the talent, IP, media synergies, or the infrastructure help Sony could better provide.
 
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ksdixon

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Is there a round-up of who's made m&a statements. I spy Larian saying they're not open to being acquired, as I believe I also saw simillar from Ubisoft, Sega, Capcom and CDPR semi recently.

If these are to be taken at face value, who's actually willing and would still be beneficial to Sony or to each other? As opposed to the prospect of further wasting any spendature on more gaas/mobile studios
 
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Eternal_Wings

Eternal_Wings

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Are you sure? Because MS is buying them apparently.

🤥
Could you stop with this doom and gloom already? Microsoft is buying shit in Japan. Square and Sega rejected them twice each of them. We all know who will buy Square Enix if they are for sale and that’s nobody else than Sony.
 

Nhomnhom

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With Larian out of the picture then CDPR becomes the obvious target. They clearly have the talent but their leadership/management fucked up with Cyberpunk, there would definitely be some work for Sony to do but I think they have shown plenty of competence when it comes to that stuff.

A move like this would at least balance out the RPG situation but I would still want them to secure From Software as well.
 

Puff

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Screenshot-20230807-034314-Chrome.jpg


SquareEnix stock is down right now, might be a good time to buy
 
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Eternal_Wings

Eternal_Wings

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Drones are crying right now in the comments. It’s hilarious. Some of them suspects it’s because of Sony:
 

Ludwig

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Sony is going to sit on the sidelines like they always do.
It's hard not to imagine this.

The first thought of Jim Ryan when MS bought ABK is that this isn't about exclusivity. It was after 6 month that he realizes that this deal IS about exclusivity.
There is a good chance that Jim Ryan thinks that SE games will continue to be on PS. If MS were to buy SE. He definitely underestimated MS on that front.
 
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historia

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I don't think Sony is that dumb, Square stocks are already low so I think Sony may try to in talks to acquire Square if they looking for buyer. Otherwise Nintendo may snoop them.

Also about foreign firms acquiring one of the biggest games publishers in Japan, I think it is impossible. Seriously, game and entertainments is the only front we at least have here, after we lost the semiconductors front and electronics front. Like I don't think the government would stand still seeing that happen, last year a US car manufacturer firm decides to acquire a major part in an car batteries firm and it was blocked on the ground.

Any attempts would not bold well with general public though, it would be called a hostile takeover and being investigated for sure.

MS attemped to buy Sega part of Sammy a few years ago but the best they could do is partnership throught their cloud services. I think Sony should be more cautious about that.
 
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