By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Of course, in real life situations, companies offer a price-per-stock much higher than the current market value to buy a controlling majority. So, Nintendo could possibly buy a controlling majority of Sony using cash only, but not the whole company. Now, if they were to pay in shares, then there'd be no problem...

Anyway, this just goes to show that revenue is a direct measure of the size and influence of the company, but profitability (and future expectations even moreso) is what determines the market cap.