I mean, let's be honest, at this point why even bother? PC pretty much gets everything sooner or later. Buying a PS5 at this point and not buying anything else is limiting yourself from a bunch of major third party games. Long gone are the PS2 days.

HAHAHAHAHAHAHA

Yes, these deals are made with not just cash, but you still need cash. Let's use your example. Take-Two financed the deal with 36% cash. Well, 36% of Square is 248 billion yen, which would leave Sony with 626 billion yen across their other divisions. As of the 6 months ending 9/30/2021, Gaming sales was 27% of total sales revenue. Even in this scenario, they are strapping themselves for cash. Moreover, the company isn't in the best spot with chip shortages and key titles going to Microsoft. It's going to be hard to underwrite a loan for this. Also, these purchases will be more than current market cap, so it's going to harder to do. As things stand now, Nintendo (and of course) Microsoft would be better able to make the deal work. 

Lastly, that cash Square has isn't to go reimburse Sony for the purchase. The company needs that to operate. Really, Sony buying Square is more of a fanboy dream. It's not very practical. 

Btw, I just looked up Nintendo's net worth and found two contradicting numbers as of 2022.
One says $95 billion:
https://thesmallbusinessblog.net/nintendo-net-worth/
https://mddailyrecord.com/nintendo-net-worth-2021-2022-2023
https://www.wealthypersons.com/nintendo-net-worth-2020-2021/

The other says $59.39 billion:
https://www.macrotrends.net/stocks/charts/NTDOY/nintendo/net-worth#:~:text=Nintendo%20net%20worth%20as%20of%20January%2014%2C%202022%20is%20%2459.39B.&text=NINTENDO%20LTD%20is%20the%20acknowledged,the%20creation%20of%20interactive%20entertainment.

And apparently it was $71.2 billion last year in May:
https://www.forbes.com/companies/nintendo/?sh=4f5cea261898

Sony execs this morning:

Microsoft is going to buy Take 2 to complete their triforce and it's going to be game, set, match. 

How in the actual **** can companies go on buying sprees like this. I love Xbox but it honest Just feels so wrong. Is it just me?

If Nintendo was hard too stringent on 3rd parties, and Microsoft swallows them like a Kirby, Sony PlayStation truly is the only company with a sense of what’s just and right. 

They basically executed Order 66.

I don't know how to feel about this just yet.

My second point above is basically that the other divisions basically owe SIE. If you were to apply this to any of Sony's other acquisitions, many of them wouldn't have happened.  So yes, they make up ~27% of the company's total revenue, but on any given year they tend to get a substantially smaller portion of that. And at some point that could go the other way.

I think your missing the point of this analysis. If all cash was split equally, than Sony's gaming division would have claim to 27% of their cash. Its not an exact number (and it actually includes sales from the Financial Service sector), but the point is that even with the 626 in cash, that amount needs to be split between the other divisions because that is all of Sony's cash. Your point on the divisions owing Sony is mute here because this is trying to split cash evenly. Sony Gaming can't hog all the resources the other departments needs because they made acquisitions in the past. Point is, Sony doesn't have the liquidity to make a deal work. 

*On 626 billion yen - "In just cash, Sony has 1.473 trillion yen. However, this is split between all of Sony's departments. If you take out Sony Financial Services, they only have 874 billion yen." 874 minus 248 equals 626. The 1.4 trillion yen includes the Financial Service's Cash. The 874 billion number comes right out of Sony's Earnings Release.

On the last point, I thought you meant Square with SIE, so my bad on that. If you want a response to my original point, then just see the analysis I posted previously. Sony pictures CEO may be right that they will have more acquisitions, but Square is out of their league with their current positions and liquidity. Sony is not looking to hot right now, so it would be hard to finance an acquisition of this size. And if an acquisition like that were to happen, Nintendo would likely sweep in and be in a better position to make a deal, both due to their current success and greater availability of liquid resources. 

There are tons of different ways to calculate net worth of a company. For a company like Nintendo, whose primary value is in intangible assets (i.e. IP like Mario or Zelda), it's incredibly hard to calculate. I'm guessing the sites you're using use stock value as a measure of net worth (what would it take to buy all the stock of the company), but that's not really a method that a company looking to do a takeover would utilize. They would be more interested in earning projections, generally.

For a simple example, think of someone valuing Nintendo in 2014-15. They would have likely vastly underrated Nintendo's earnings potential and offered far less than the brand was actually worth. It's not an exact science.

I'm not sure why for Nintendo? I know there are a few games, mainly Blizzard, that have been brought over to the Switch and done reasonably well, but I think Activision games are a fairly minor part of their overall business. And, I'm not sure that Microsoft won't sell certain games that they think will do well on Nintendo platforms as they have been doing. 

As for Sony, that's harder to say. I think Microsoft is more interested in selling content than hardware. I think the pitch will likely be "you could buy pay 70 dollars to play it on Sony's system, or pay 10-15 dollars a month for Gamepass". I sort of doubt they'll keep it out of Playstation entirely.

I think we're getting close to a Netflix style world, where it's going to be pretty common for people to have both Gamepass and whatever Sony offers to compete with. I don't think Microsoft will feel the need to sacrifice a large part of their potential revenue to keep people from buying a PS5. I think they'll just be happy as long as you have a Gamepass subscription on some platform.