$14B IS well above TTwo's current worth of <$10B. $14B is based on the proposed price of $130 a share, and current shares are in the mid 90s. Also, covered that.

The price in the OP is already at an over 30% premium on what they're worth.

Once purchased, this new asset would fund it's own operations like it always has and more efficiently than before. Many new cost reduction synergies would be realized. Not having to pay a royalty on a PS4 game is one that immediately comes to mind. Also, of course Sony wouldn't spend every single dollar it had in the transaction, a portion of the sale would be financed through debt. This is common. Just last year, AT&T bought TimeWarner for $85B while had around $50B in cash on the balance sheet (a lot of which was added in advance through debt in prep for the purchase). The next reporting period, cash went down to $5B and the excess was added to long-term debt. Rarely are major cash acquisitions on this level completely covered by cash.

Not really talking about any of that. Just on the actual ability of Sony to handle a $14B purchase.

There is no company going to nuke their cash reserve to make an enormous purchase like this.  Forget about the assets in Billions, that is for buildings, headquarters, Company systems things like that.  Sony isn't selling crap to make purchases of this type either.  Lets leave Revenue out of the equation as that would not determine Sony purchasing power.  If Sony is going to do a cash payout it will be with their reserve cash.  The thing is 14BN probably isn't the price T2 is willing to sell at.  It could be easily the price Sony threw out there.  There is no reason for T2 to sell at such a low bid on their market cap.  If Sony cash reserve is 28, you can believe T2 would be looking to get as much as possible especially if they are not up for Sale.

Another thread with people making claims completely out of what business work at.

Oh right sorry I was thinking of rocksteady instead of rockstar. I'm an idiot

Seems unlikely because its unnecessary. I mean its a huge purchase for more dominance in the console market.

But Sony pretty much is all about PlayStation at this point. So its not crazy to believe they would want to grow their market share.

You would think MS could more easily make this purchase, assuming its possible.

I believe if MS smelled something like this was in the works they would check the waters just to see if there is any validity to the claim.  Yes, MS could easily counter any offer Sony could make money wise or make it so that Sony has to pay so much it would turn out improbably.  The thing is T2 has no reason to take a bid like that from Sony and not see if MS would pay more.  If we are talking money deals, then why not shop that price around and get the maximum.  No matter if its MS or Sony, next gen things pretty much start again.

And if not the rumor how exactly would MS smell it?

If Take Two was thinking or open to selling, whatever the reason, and SNY had stepped up already and made a decent offer, it could be a situation where they make it clear the deal happens soon between them or not at all. If SNY get's wind that Take Two is shopping then the deals off. With how SNY can be sometimes, this wouldn't really be anything out of the norm. You see this happen all the time on shows like Shark Tank or Dragons Den where the big shot investors/purchasers do this because they don't want to get into a bidding war. If MS doesn't want to buy Take Two in general, or doesn't want to spend that kind of money right now, then Take Two would be in a tougher spot. Considering this all comes after MS has spent a bunch of money on multiple smaller studios, it wouldn't be crazy to think it was smart strategy by SNY the entire time. That's not to say MS couldn't find $20 large to outbid SNY, but the likelihood of that after the moves MS has already made is much more improbable. Then again, it all may be bogus to begin with.

Can't be true...I mean, why wouldn't Microsoft buy them out? They can offer more than Sony can. I don't get this.