If I was Iwata, I would go for Capcom, Sony's Playstation division and Rareware. All the money needed is still sitting on the bank, now or never.
Square-Enix on the other hand is not worth buying, it owns too many crappy and risky western studios. They should only buy the Japanese part and sell the rest.

While acquisition is not a bad strategy, Nintendo could just build new studios from the ground with new IPs.

Their problem is not that though. What they need is better 3rd party relations, better online and most importantly better marketing. They could also bet in better spec hardware, even if they attach a expensive peripheral to it.

Lacks functions? Its rivals don't even have a second screen! Let alone off-screen play!

Fool.com is so Bias against Nintendo I'm surprised they don't tell their readers to hunt down every Wii U owner and burn them at the stake.

I read this yesterday. How is Nintendo suppose to buy Square/Enix if Sony owes so much of it? You think they'll allow a sale of it?

who needs a second screen when you have a nice big tv,

but what about unified accounts, friendslist, party chat, achievement system, ability to download games on every console when my account is signed in, beeing able to play  all games with a normal controller, ...

Sony sold all of their shares.

This analysis is so fanatical that it's a joke.

1) Capcom is in debt. Nintendo wouldn't only be buying Capcom, but the massive debt they owe as well. Capcom would be well over its asking price because of that. Also, most of Capcom's noticeable talent have already left. There's Yoshinori Ono, but that's it!

2) 3 billion dollars isn't worth the ownership of just a few IPs. Granted, SE owns IPs to many renowned RPGs, but those games were created by talent that have long left - as a matter of fact - they work for Nintendo! Camelot is a 2nd party developer created by former SE employees. As a matter of fact, many of them worked on Chrono Trigger. You can see their work in games such as Golden Sun. Nobuo Uematsu, SE's former master composer, is freelance. His latest work was in The Last Story, created by the former founder of the Final Fantasy series. The founder of FF now works at MistWalker.

3) Glu Mobile? Really? People say Nintendo needs to go mobile, but the profits for those types of games are razor thin. Animal Crossing net Nintendo more money than the entire Angry Birds franchise has for Rovio.

Mii-Verse posting at certain points in certain locations to leave/recieve context sensitive messages from friend and awesome are from other users is way more fun than acheivements.

I won't pretend that the voice chat options on the Wii-U are as optimised as those on the PS4 - though many of us are hopeful that Splatoon's devs supposed interest in that stuff will make it obvious to the rest of Nintendo how useful it is to expand its functionality to full-blown functionalities like cross-game and such.

Off-screen play is perfect for anyone with a family. Also on paper large RPGs could be fantastic with it, though so-far the closest we've come to seeing those incredible upgrades is the best versions of Deus Ex: Human Revolution and Legend of Zelda: Wind-Waker. Personally I also have a few game ideas I'm working on in Unity for it, but I need to put my first game on Android (nearly there) before I feel comfortable 'hiring' a few people I know. 

Many of the Wii-U games are compatible with its Pro-Controller, but outside of fair local multiplayer (the gamepad screen has less leg than the TV does on any console) for high level competitive play, there is no real point to that because the Gamepad is perfectly comfortable (far more so than the Pro-Controller in my opinion, I always try to play the Pro-Controller like a 360 or Gamecube one - they should have just copied the 360 controller; I mean its a freaking copy of the orginal Xbox which copies the Gamecube). 

The key is in capacity promotion. Nintendo has plenty of IPs, many of which could be distinctly "non-Nintendo" (like bringing back Ken Griffey Baseball or Eternal Darkness).

What Nintendo needs, i would say, is to grow NST into a behemoth studio system, 4 teams capable of putting out a game once every two years or so, as Retro was meant to be (not that it was the wrong decision for Retro, excellent as they are) to be EAD's American counterpart (while Retro remains a more focused, elite studio, kind of like Monolith or Intelligent Systems across the Rim). That would be the quickest way to achieve diversity in game design and boost capacity.

Capcom would make a lot of sense and bring in new fans while adding capacity. But overall I think their strategy should be to pick up 3-4 skilled western developers that can make all-new IP in new genres. Gunfire games would be a great fit, or maybe they could buy id from Zenimax too, and establish "Nintendo Texas" along with Retro. Create a couple of annual, semi-annual or perpetually online with updates (eg Destiny or MK8) FPS or 3rd person adventure titles with mass appeal. Then they should fund 3-4 more 3rd party devs as they have done with B2 or Devil's third, but I would target some obscure new western titles (hopefully find the next Minecraft) and a couple JRPG's (Mistwalker especially). There should always be 6 western titles in development and 6 3rd party publishing agreements in place so that 4 non-traditional Nintendo titles are released each year to compliment Nintendo's own output. Then the system would be self-sufficient... and also very appealing to gamers. They could probably expand their capacity in this way for less than 500 million, and fresh new titles would probably have more impact than old IP. The next COD or AC or Minecraft debuting on Nintendo is much more important than chasing past glory.

Either that or buy Take2.