Apple’s Next Big Move? It Should Buy Nintendo

www.barrons.com

Speaking of, Tae Kim recently made the case (which many of us have been making for years), that Apple should buy Nintendo. Some numbers:

Nintendo has a market value of $34 billion, but Nintendo is conservative with its capital and has approximately $9.6 billion in net cash. That gives the company an enterprise value of about $24 billion. If Apple offered a 50% premium to Nintendo’s market value—a deal that Nintendo would have to consider—the price tag would come to roughly $40 billion.
That’s still cheap. As recently as a year ago, Nintendo had a market value of $55 billion. If a full acquisition can’t be consummated, a large equity stake or strategic partnership could also work for both companies.

The main hold up, of course, is that Nintendo is not for sale. And it seems particularly hard for an American company to buy a Japanese one for all sorts of reasons, many of which are cultural. And, of course, per the above links, Nintendo is once again quite profitable. So convincing them to sell is not going to be easy, to say the least. If Apple can't, perhaps Bob Iger can, as his Disney swan song... He craves that IP, after all...

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