What would happen if MS bought Nintendo? Good or bad?

[Dr.Henry_Killinger]

DD_Bwest said:

youve already agreed that we wouldnt ever see them liquidate its assets,  and now your argueing that we dont know that?     and at the end there you agree that the cash reserves would be applicable in that situation.   

so now your trying to argue the semantics of what we are going to call nintendos value with or without its cash reserves?   or which is more likely, a hostile takeover or a 15 billion dollar company liquidating the only assets it really has that makes money (other than interest from investments) and than dissolving itself?

No no no. I agree that Nintendo wouldn't liquidate its assets.

But in the hypothetical situations of A. Buyout/Hostile Takeover or B. Selling of the company,

Nintendo's stockpiles/investments increase the stock price but not the market value so they are applicable in A rather than B.

If Nintendo was selling themselves off, they would liquidate their monetary assets such as investments, bonds, etc and pocket the money and then pocket more money from selling Nintendo. I mean if Nintendo wanted to sell off their assets why in gods name would they include their own investments driving up the marketprice? The only difference between selling it for 5 billion + cashing out the other 10 billion and selling it for 15 billion as a whole is that the first deal is a lot more likely to get bought sooner. This is why it doesn't apply to the market value "directly".

In case A  were MS is buying control of Nintendo through its stocks, then they are assuming the debt and stockpile of Nintendo, but every single share they buy will cost more because of the cash that Nintendo has.

Not to mention Japanese companies are notoriously hard to take over hostily especially by American Companies.

So its not truly semantic, there is a significant difference, and Nintendo selling the company is a lot more likely then MS hostily taking over it, even if these are 2 hypothetical "impossible" situations.