Why Sony's Take-Two Aquisition RUMOR seems possible now?

[DonFerrari]

LudicrousSpeed said:

The

DonFerrari said:
Some people have 0 idea on how business work.

 

DonFerrari said:

If MS paid 2.5B for Minecraft no one can call Sony crazy for paying 10B on TakeTwo (but yes I don't think it is a soundy decision).

What an ironic 1-2 combo of posts.

Please explain to me what irony have in saying the business isn't a very soundy decision, as much as MS putting 2.5B in a game that didn't had assured return of that in profit.

EricHiggin said:

DonFerrari said:

Yes I know it. My company when bought had like a 20% bonus on the share or less when they decided the price. When it gone for the stockholders to decide because the rumor spread out and stock evaluated the bonus was like 5%. They sold anyway because they expected the stock to fall in the short and middle term because the company had evaluated almost 100% in 2 years.

I'm talking more about bid war (on a deal that was secret before leak), sharing profits (when you are already making your profit and some on the sale) and other stuff.

And yes I agree it's unlikely to happen.

I was just using your point to elaborate for those who didn't realize public companies don't exactly operate in the same way as a private company and that the stock market isn't the perfect indicator of a public companies overall position. I could've been more clear on that in retrospect.

I understood your intention, at least I think so, that is why I gave even more information that corroborated your point.

Also to remember is that if Sony intended to do an "agressive" takeover on the stock of TakeDown they likely could as well (even less probable than an amicable purchase with premium on the shares).

So all in all I do agree that if shareholders don't think in the midterm the shares would get anywhere near what Sony is offering I don't see much reason for they to refuse to sell.