Microsoft was evaluating the long-term acquisition of Nintendo: this is the sensational indiscretion leaked online in the last few hours
In the last two years Microsoft has made important moves in the sector of acquisitionshaving taken ownership of the parent company of BethesdaZeniMax, for $7.5 billion, and currently being acquired Activision Blizzard in a massive operation worth $69 billion. Interestingly, another company on which Microsoft seems to have set its sights as a long-term prospect is nothing more than Nintendo. This information has been leaked by some email internalwhich emerged as part of Microsoft’s lawsuit against FTCwhich show a conversation regarding the possibility of acquiring the Japanese giant between the number one of Xbox, Phil Spencerand Microsoft’s executive vice president and chief commercial officer, Takeshi Numoto. Let’s see all the details about it in the next lines of this article.
Microsoft: “Nintendo is taking a long time to understand that its future is not tied to its hardware”
“I absolutely agree that Nintendo be THE main resource for us Microsoft in the gaming industry, and that games are our most likely path to consumer relevance today,” he wrote Spencer in the email in question, which you can view in full above. “I’ve had numerous conversations with the CEO of Nintendo about one closer collaboration and I think if a US company can have a chance with Nintendo, we’re probably in the best position.” Spencer then pointed out that, given that Nintendo’s board of directors is not pushing “for further increases in market growth or stock appreciation,” a near-term acquisition is unlikely; however, Microsoft board member Mason Morfit, who is the president of ValueAct, has been “heavily buying” Nintendo shares, which could “create opportunities” for Microsoft in the future. Interestingly, according to Spencer, Microsoft is “playing the long game” when it comes to acquiring Nintendo, especially since the company is reluctant to initiate a hostile takeover, while Valve is also an acquisition target.
“Without this catalyst, I don’t see the possibility of a near-term merger between Nintendo and Microsoftand I don’t think hostile action would be a good move, so we mean play long term“Wrote Spencer. “But our board of directors has seen the entire documentation on Nintendo (and Valve) and, like me, is fully supportive of a merger if the opportunity presents itself.” Spencer added: “At some point, the Nintendo acquisition would be an important moment in our career and I honestly believe it’s a good move for both companies. Just that Nintendo is taking a long time to understand that its future is unrelated to its hardware“. Interestingly, the email, written in August 2020, also mentions that at the time the Redmond giant was in “pretty active merger and acquisition discussions” of Warner Bros Interactive Entertainment (along with ZeniMax , a deal that ultimately closed), but viewed IP ownership as the primary obstacle, as Microsoft “would not own any of the IP” currently under WB Games, which Spencer said would “hurt long-term flexibility.” Previously, thanks to court documents, it had emerged that among the other companies that Microsoft had considered as potential acquisition candidates were Ubisoft, CD Projekt RED, Larian Studios, Square Enix and others still.
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