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Forums - Nintendo - Nintendo has an Enterprise Value of $-8.84Billion

*According to Yahoo finance.

What does that mean?  Nintendo has almost $11 Billion in cash equivalents, but their market cap is currently only $2 Billion.  It means if someone acquired all interest in Nintendo for it's market price of $2 Billion in cash, they would get the business plus $11 billion in cash.  Free money basically.

Could Microsoft, Sony, Apple or Google buy Nintendo easily?  Google is buying Nest for $3 billion.



My 8th gen collection

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Nintendo would seppuku itself before being purchased by another company.



Microsoft, Apple and Google could buy Nintendo easily. (Sony isn't able to right now).

But I don't see it happening. It has no point whatsoever, I mean, unless those firms want to get into the gaming market or have Nintendo's licenses, this wouldn't make much sense to me.

Also I don't think that Nintendo would let them buy out their company that easily



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Wright said:

Nintendo would seppuku itself before being purchased by another company.

Well they are already busy with that.



I assume you're getting those numbers from Yahoo Finance.

They don't make sense. I'm assuming their figures are wrong because of incorrect input of data somewhere along the line.

http://ycharts.com/companies/NTDOY/enterprise_value - current enterprise value $7.974 billion

http://www.infinancials.com/en/financial%20ratio,Nintendo%20Co%20Ltd,90524FJ.html - current enterprise value $8.123 billion

Enterprise Value = Market Cap + Debt - Cash. Nintendo's Debt is about zero, and it's Cash (according to Yahoo Finance) is about $10.74 billion...

https://www.google.com/finance?q=ntdoy&ei=EWnkUujXD4XBkAXiyAE - Its Market Cap is $18.54 billion according to google. That puts its Enterprise Value at $7.8 billion.

I assume that what's happening is Yahoo Finance is working only on shares available outside of Japan, which is limited, as I understand it. And this is resulting in it calculating a market cap of $2 billion, rather than $18.54 billion.



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Zisbest said:
Microsoft, Apple and Google could buy Nintendo easily. (Sony isn't able to right now).

But I don't see it happening. It has no point whatsoever, I mean, unless those firms want to get into the gaming market or have Nintendo's licenses, this wouldn't make much sense to me.

Also I don't think that Nintendo would let them buy out their company that easily

Yeah, it just seems Nintendo is really undervalued.  Their IPs could be pretty valuable to AAPL/GOOG - if they could move the needle of mobile device sales in their favor.

Especially GOOG is into selling cheaper devices to grow the computer user market (while APPL is going after premium market), so Nintendo's cheaper devices could fit with GOOG - and they could make both dedicated handhelds as well as smartphones with Nintendo's games.  Plus these companies have antennas in the global market, not just in Japan like Iwata.



My 8th gen collection

you guys talk about $9000,000,000 like if it was spare change xD



Apple could buy Nintendo with what they leave as tip after paying a coffee



Uabit said:
Apple could buy Nintendo with what they leave as tip after paying a coffee

I agree, you can probably find enough cash between the couch cushions in the lobby at Apple HQ in Cupertino!



It is near the end of the end....

I don't think you really understand financial statements that well. 



I predict NX launches in 2017 - not 2016