Apple to buy Nintendo?

[Alby_da_Wolf]

kowenicki said:

Alby_da_Wolf said:

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kowenicki said:

Alby_da_Wolf said:

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This. BTW the article says Apple has ~$50billion cash, currently. About the undeniable differences, the author thinks Ninty would be perfect for Apple to expand to a profitable market Apple alone wouldn't be able to cater for unless it spends billions $ and decennia of time to establish strong franchises, faithful user base and brand recognition in the console market, buying Nintendo could solve the problem for a huge amount of money as doing it by itself, but saving many years and being profitable from the start.

Excepet that I would imagine Apples view of Nintendo is that they have a broken and outdated business model....

Currently broken, but with huge potential to get things right again, the right moment to buy at as little as possible, fix what's wrong and make a huge profit and market expansion.

as mentioned elsewhere though..... the return on capital isnt anywhere near enough.

Good objection, estimating whether the investment is worthy would be very difficult, first Apple should predict how much its cash will be devaluated (or the net value of its interests reduced) by the current crisis if it's not invested, then it should estimate whether current Ninty problems, that drove its shares down, can be solved easily, with better management, advertising and marketing, or if they'll require further investments and resources, then there are assets to be evaluated too, then there's also the possible opposite problem that if Ninty shares are currently undervalued due to excessive, hysterical stock market reactions, even a plausible rumour of a bid by Apple could drive them up again as fast, making the investment totally unprofitable... In the end the financial aspects of the deal could really be the trickiest.