Before you start the 7th billion Nintendo is Doomed thread

[OdinHades]

Mr Khan said:

OdinHades said:

morenoingrato:
Frankly, I am getting sick of that BS.

If they have so much money, invest it!

This. As a consumer I couldn't care less about Nintendos profits. I will get whatever gives me the most for my money. And that's not Nintendo at the moment. 

 

Also, if Nintendo would be losing money for like 5 years straight, the stock price will go to shit which would make a hostile takeover extremely likely. So in the end, they are not doomed. But they're also not safe.

If your stock price goes in the tank, you do a buyback (just as Nintendo has). Hostile takeovers make for good TV drama, but they are HARD to pull off in real life.

Of course it's hard, but it gets easier if a company isn't successful and is losing money. Buyback is a possibility to prevent hostile takeover, but Nintendo doesn't have enoough money to buy all stocks back. about 10 billion in cash vs. 16 billion market cap so they're lacking 6 billion dollars to get their company back 100 %. Also, if Nintendo is buying back too many stocks, they will have a harder time finding investors, which is pretty important when your cash is melting away. Now I don't know how many stocks are out there and who are the main stockholders, but a takeover isn't completely impossible. Imagine Microsoft getting desperate because of bad Xbox sales. They have money and power and could possibly pull this off if Nintendos market cap goes down considerably in the next few years. 

It is very very unlikely and I'm not saying it will happen, but it isn't impossible by any means. You simply cannot know what will happen. Calling anything impossible is quite short sighted. Be it Nintendos doom or Nintendos invincibility. The truth is somewhere in between.