What happend to the "Sony is going to buy Rockstar" rumor?

[Linkasf]

ImJustBayuum said:

Linkasf said:

Solid_Snake4RD said:

Linkasf said:

Solid_Snake4RD said:

Grimes said:

Sony does not have more money than Nintendo. Sony has more assets but has much higher debt and expenses. Nintendo has built a huge cash reserve over the past few years and has little debt and low expenses.

u really think a company like Sony with $250B ASSESTS has less money than a company with $19 assets.

 

sony didn't just survive their huge losses with PS3 just like that.they have a big big pocket full of cash.and they are gonna make alot now

Some people forgot about the financial crisis? They slashed thousands of workers so I don't think they'd be able to afford buying a game studio as big as R*.

they slashed workers cause they were restructuring,this has nothing to do with their ability to buy a company.it depends on the fact on whether it is good for the business or not

Exactly. Restructuring and cutting losses.

Restructuring (ie cutting losses) suggests that the company is in a bad financial position. Rarely during these kind of situation would a company like Sony buy significant entities (even if they predicted it will be a good investment). This is because they are in a position where they had no choice but to be conservative regarding material spendings as their going concern, ability to borrow etc are in fragile positions. ie they cannot afford to just go out and buy a company like R*.

BTW, Its not as simple as S.Snake4RD has put it "sony has 250 billion" assets, therefore they could afford to buy R* if they want. For example i assume a significant % of that 250b assets are inventory, because sony afterall is a inventory base company. Therefore their ability to generate cash depends if they sell iventory or not. The financial crisis has made difficult for companies like sony to sell inventories therefore affecting their revenue/cash reserves.

Well there ya go. Pretty much well said.