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[Poll] Who will NCsoft Buy? (M&A)

124

Comments

  • sammandarsammandar Member Posts: 523
    Originally posted by cinos

    It's simply because of Nintendo's falling stock of late, NCSoft do have a lot of funding and could afford Nintendo at present.

    Not that Nintendo would ever sell of course.

    I think you are underestimating how big NCSoft actually is though. As an example Nintendo shares currently sell for around $14 where as NCSoft shares sell for over $200. There's a lot more there than meets the eye.

    Exactly, which is why I think people are underestimating NCsoft's ability to make a large purchase.

  • WolfynsongWolfynsong Member Posts: 237
    Originally posted by cinos

    It's simply because of Nintendo's falling stock of late, NCSoft do have a lot of funding and could afford Nintendo at present.

    Not that Nintendo would ever sell of course.

    I think you are underestimating how big NCSoft actually is though. As an example Nintendo shares currently sell for around $14 where as NCSoft shares sell for over $200. There's a lot more there than meets the eye.

    Ah... it seems I am.  If their stock price is that high, then I suppose my original thoughts were very wrong as well.  NCSoft might well be able to buy out whatever company they please.

    I still don't understand it, though.  How many people outside the MMO genre have even heard of NCSoft?  Versus a household name like Nintendo?

  • laseritlaserit Member LegendaryPosts: 7,591
    Originally posted by cinos
    Originally posted by Wolfynsong
    Originally posted by cinos 

    They actually do have the clout.

    I agree Nintendo is highly unlikely not because of price but rather I don't see NCSoft wanting to get into the console market just yet, but EA and Activision are actually both within NCSofts realms for acquisition/merger.

    Bare in mind that Vivendi has been desperate to offload Activision for a long time, so it isn't outside the realms of possibilities.

    Best theory I've seen so far is Funcom, however I'm not sure what NCSoft would gain from that purchase.

    What I meant by saying Nintendo was self-contained is that I can't imagine them being willing, with their level of dedication to their own ideals, being willing to risk takeover by publicly trading a controlling share of stock.  I could be wrong here, of course, but I'd be amazed if this ever happened.  Though if it did, we might actually get a real controller from them again... hmm.

    As for having the clout, I just don't see how that is possible.  You're talking about one of the biggest worldwide gaming companies (Nintendo) versus NCSoft, which... has Aion?  Guild Wars?  CoH?  Nintendo has probably sold near twice as many Wii units than all of those games combined (at 25+ million), not to mention actual games for them, or their other offerings.  Even if the profit margin on the Wii units is much smaller, I still can't see NCSoft being in the running against them.

    It's simply because of Nintendo's falling stock of late, NCSoft do have a lot of funding and could afford Nintendo at present.

    Not that Nintendo would ever sell of course.

    I think you are underestimating how big NCSoft actually is though. As an example Nintendo shares currently sell for around $14 where as NCSoft shares sell for over $200. There's a lot more there than meets the eye.

     That depends on the quantity of shares. I dont know what the number of shares are for each company but the price means nothing on its own.

    "Be water my friend" - Bruce Lee

  • Spartan212Spartan212 Member Posts: 55
    Originally posted by sammandar
    Originally posted by bcbully
    Originally posted by bcbully
    Originally posted by colddog04
    Originally posted by Derpybird
    Originally posted by jpnz

    bcbully, you do realize all it would take is for 3 people who own 5% each to have a larger say than Nexon right? If you want to spam about takeover and controlling interest, you should look at Vivendi and Activision/Blizzard. Nexon only owns 14.7%, Vivendi owns 61%.

    As a CPA, let me assure you that bcbully is completely wrong (not that I needed to tell most of you).  I'm really not going to go into tax code and GAAP laws, but a "hostile takeover"  has to be, well, HOSTILE and a TAKEOVER.  If this stock purchase was malicious, the gaming press would have been all over this story.  It was nothing more than a blip on the radar for them

     

    "It takes a big man to admit he is wrong.  I am NOT a big man"  ~~Irwin M. Fletcher

  • dotdotdashdotdotdash Member UncommonPosts: 488
    Originally posted by Spartan212
    Originally posted by sammandar
    Originally posted by bcbully
    Originally posted by bcbully
    Originally posted by colddog04
    Originally posted by Derpybird
    Originally posted by jpnz

    bcbully, you do realize all it would take is for 3 people who own 5% each to have a larger say than Nexon right? If you want to spam about takeover and controlling interest, you should look at Vivendi and Activision/Blizzard. Nexon only owns 14.7%, Vivendi owns 61%.

    As a CPA, let me assure you that bcbully is completely wrong (not that I needed to tell most of you).  I'm really not going to go into tax code and GAAP laws, but a "hostile takeover"  has to be, well, HOSTILE and a TAKEOVER.  If this stock purchase was malicious, the gaming press would have been all over this story.  It was nothing more than a blip on the radar for them

     

    "It takes a big man to admit he is wrong.  I am NOT a big man"  ~~Irwin M. Fletcher

    A good example of a hostile take over would be the Porche v Volkswagen fiasco. Porche used a number of puppet organisations to buy a huge amount of shares in Volkswagen, but nobody knew it was going on.

    Then Porche told everyone they controlled these companies, and that they now owned a controlling share in Volkswagen. Everyone cried. It was very hostile.. Volkswagen tried to sue Porche, and also tried to claim that what they had done was illegal. Porche had a number of Volkswagen executives fired. It was all very messy... and very hostile... and a takeover.

    I may be wrong, however.

  • DerpybirdDerpybird Member Posts: 991
    Originally posted by bcbully
    Originally posted by colddog04
    Originally posted by bcbully
    Originally posted by colddog04
    Yeah, he doesn't know what a hostile takeover is or what controlling interest is. Controlling interest can be smaller than 50%, but it is decided by the company what that percentage is. Obviusly 14.7% is far too low in this case as it's likey 50% like you say at NCSoft.

     

    Look at the headline of the article for a little highlight on all this:

    http://www.bizjournals.com/prnewswire/press_releases/2012/06/08/NY21443

     

    Nexon Acquires 14.7% Minority Interest in NCsoft

    You are completely wrong my friend, and so is the other guy.  A take over constitutes buyin around 8% of a companies shares. In this case it is 14%

    It was a private deal ffs. Call it what you want. Hard,soft,friendly, hostile it was a takeover none the less, as my OP states.

    http://betanews.com/newswire/2012/06/08/nexon-acquires-14-7-minority-interest-in-ncsoft/

    TOKYO, June 8, 2012 /PRNewswire/ -- NEXON Co., Ltd. ("Nexon") (3659.TO), a worldwide leader in free-to-play online games, today announced that it has made a strategic investment in NCsoft Corporation ("NCsoft") (036570.SE), a global online game developer and publisher.  Nexon today acquired 3,218,091 shares of NCsoft in a private transaction from Chairman, CEO, and Founder Taek Jin Kim at a price per share of KRW 250,000 in cash, for a total acquisition cost of KRW 804,522,750,000.  As a result of this transaction, Nexon has become NCsoft's largest shareholder with a share ownership of 14.7 percent.

     

    lul...

     How can you explain controlling interest to someone when they refuse to listen to the definition of controlling interest?

    GG man. 

     Investopedia explains 'Controlling Interest'

     For the majority of large public companies (such as those that belong to the S&P 500),  a shareholder with much less than 50% of the outstanding shares can still cause a lot of shake-up at the company. Single shareholders with as little as 5-10% ownership can push for their own seats on the board, or enact changes at shareholder meetings by publicly lobbying for them.

    Read more: http://www.investopedia.com/terms/c/controllinginterest.asp#ixzz233hZ3J6m

     keep editing it wont make you right.

      

    Since you're an expert on financial matters, can you explain why Funcom is trading near its 52-week low and has cratered 66% since mid April?

    "Loading screens" are not "instances".
    Your personal efforts to troll any game will not, in fact, impact the success or failure of said game.

  • bcbullybcbully Member EpicPosts: 11,843
    Originally posted by Spartan212
    Originally posted by sammandar
    Originally posted by bcbully
    Originally posted by bcbully
    Originally posted by colddog04
    Originally posted by Derpybird
    Originally posted by jpnz

    bcbully, you do realize all it would take is for 3 people who own 5% each to have a larger say than Nexon right? If you want to spam about takeover and controlling interest, you should look at Vivendi and Activision/Blizzard. Nexon only owns 14.7%, Vivendi owns 61%.

    As a CPA, let me assure you that bcbully is completely wrong (not that I needed to tell most of you).  I'm really not going to go into tax code and GAAP laws, but a "hostile takeover"  has to be, well, HOSTILE and a TAKEOVER.  If this stock purchase was malicious, the gaming press would have been all over this story.  It was nothing more than a blip on the radar for them

     

    "It takes a big man to admit he is wrong.  I am NOT a big man"  ~~Irwin M. Fletcher

    Mr. CPA this was my OP that was removed.

    "Originally posted by bcbully

    Amazing thread here... They just got taken over by nexom... They just lost 6 million. Still you guys think they are in the buyers market? 

    Wake up people."

     

    After this I defined hostile takeover, soft takeover, takeover, and contoling stake.

     

    Nexom bought 14% from the ceo of ncsoft in a PRIVATE deal.

     

    As a CPA you should know that in the vast majority of coprs. 8% is usually all that is needed to have a controling stake. 

     

    Mr. CPA tell me where I am wrong? Would you prefer to call it a soft takeover or a friendly takeover? Regardless. As my OP states it is a take over.

     

     

     

     

     

     

  • BeansnBreadBeansnBread Member EpicPosts: 7,254
    Originally posted by Derpybird
    Originally posted by bcbully
    Originally posted by colddog04
    Originally posted by bcbully
    Originally posted by colddog04
    Yeah, he doesn't know what a hostile takeover is or what controlling interest is. Controlling interest can be smaller than 50%, but it is decided by the company what that percentage is. Obviusly 14.7% is far too low in this case as it's likey 50% like you say at NCSoft.

     

    Look at the headline of the article for a little highlight on all this:

    http://www.bizjournals.com/prnewswire/press_releases/2012/06/08/NY21443

     

    Nexon Acquires 14.7% Minority Interest in NCsoft

    You are completely wrong my friend, and so is the other guy.  A take over constitutes buyin around 8% of a companies shares. In this case it is 14%

    It was a private deal ffs. Call it what you want. Hard,soft,friendly, hostile it was a takeover none the less, as my OP states.

    http://betanews.com/newswire/2012/06/08/nexon-acquires-14-7-minority-interest-in-ncsoft/

    TOKYO, June 8, 2012 /PRNewswire/ -- NEXON Co., Ltd. ("Nexon") (3659.TO), a worldwide leader in free-to-play online games, today announced that it has made a strategic investment in NCsoft Corporation ("NCsoft") (036570.SE), a global online game developer and publisher.  Nexon today acquired 3,218,091 shares of NCsoft in a private transaction from Chairman, CEO, and Founder Taek Jin Kim at a price per share of KRW 250,000 in cash, for a total acquisition cost of KRW 804,522,750,000.  As a result of this transaction, Nexon has become NCsoft's largest shareholder with a share ownership of 14.7 percent.

     

    lul...

     How can you explain controlling interest to someone when they refuse to listen to the definition of controlling interest?

    GG man. 

     Investopedia explains 'Controlling Interest'

     For the majority of large public companies (such as those that belong to the S&P 500),  a shareholder with much less than 50% of the outstanding shares can still cause a lot of shake-up at the company. Single shareholders with as little as 5-10% ownership can push for their own seats on the board, or enact changes at shareholder meetings by publicly lobbying for them.

    Read more: http://www.investopedia.com/terms/c/controllinginterest.asp#ixzz233hZ3J6m

     keep editing it wont make you right.

      

    Since you're an expert on financial matters, can you explain why Funcom is trading near its 52-week low and has cratered 66% since mid April?

    All he really did by posting that is show that he doesn't understand the difference between lobbying others to try and get them to vote in their favor and having a controlling interest. The explaination is clearly describing a situation where shareholders do not have controlling interest, but are still able affect the way a company is run.

  • Crazy_StickCrazy_Stick Member Posts: 1,059

    Considering, my first thought was that NCSoft / Nexon may be going after En Masse Entertainment here in North America in an effort to get control of Blue Hole Studios and the game Terra rather than ever worrying with Lineage 3 development.  But they do not really qualify as a "large overseas game company" from my perspective. With the history involved it would make an evil kind of sense though. Outside of that I am not really sure who would interest them in North America. Unless they are looking to make a real change in market product orientation EA doesn't make sense at first blush. "IF" CCP is up for grabs (i am not sure it is) that merger would make perfect sense for them (EVE Asia with DUST514 for PlayStation) if perhaps not CCP in whole (WOD.) This is a toughie to guess... lol.

  • fivorothfivoroth Member UncommonPosts: 3,916
    Originally posted by cinos
    Originally posted by Wolfynsong
    Originally posted by cinos 

    They actually do have the clout.

    I agree Nintendo is highly unlikely not because of price but rather I don't see NCSoft wanting to get into the console market just yet, but EA and Activision are actually both within NCSofts realms for acquisition/merger.

    Bare in mind that Vivendi has been desperate to offload Activision for a long time, so it isn't outside the realms of possibilities.

    Best theory I've seen so far is Funcom, however I'm not sure what NCSoft would gain from that purchase.

    What I meant by saying Nintendo was self-contained is that I can't imagine them being willing, with their level of dedication to their own ideals, being willing to risk takeover by publicly trading a controlling share of stock.  I could be wrong here, of course, but I'd be amazed if this ever happened.  Though if it did, we might actually get a real controller from them again... hmm.

    As for having the clout, I just don't see how that is possible.  You're talking about one of the biggest worldwide gaming companies (Nintendo) versus NCSoft, which... has Aion?  Guild Wars?  CoH?  Nintendo has probably sold near twice as many Wii units than all of those games combined (at 25+ million), not to mention actual games for them, or their other offerings.  Even if the profit margin on the Wii units is much smaller, I still can't see NCSoft being in the running against them.

    It's simply because of Nintendo's falling stock of late, NCSoft do have a lot of funding and could afford Nintendo at present.

    Not that Nintendo would ever sell of course.

    I think you are underestimating how big NCSoft actually is though. As an example Nintendo shares currently sell for around $14 where as NCSoft shares sell for over $200. There's a lot more there than meets the eye.

    NCSoft shares sell for $135 not $200. Also it's not only share price that matters. Nintendo has a market cap of $15.3 billion whereas NCsoft only has a market cap of $2.97 billion. Activision Blizzard has a market cap of $12.94 billion.

    My point is NCSoft is no where near as big as Nintendo. You don't just look at share prices.

    Mission in life: Vanquish all MMORPG.com trolls - especially TESO, WOW and GW2 trolls.

  • WizardryWizardry Member LegendaryPosts: 19,332

    They don't have enough money to buy up a large developer ,so is either a merger or a VERY bad decision to buy a falling developer.

    We know 38 studios had some nice work and are talented,they lacked the funding,who knows.

    343 studios again talented.

    My original instant thought was Ubisoft,but i LOL at myself when i found out the yare a LOT bigger than i would have given them credit for.it would be more like Ubisoft buying them out or as i said ,i feel this is maybe a merger not a buiyout.

    It is really sad to be honest,two of the bigger develoeprs have been afraid or just don't have the know how to get into the console and peripheral market.That has always been and even more so now a larger market,so go figure.

    So my guess is that NCSOFT is eyeing up the peripheral market and will merge with a developer that is already capable and lead them into new markets.

    Ubisoft is maybe one of the most under rated giants out there.

    Another VERY weird thing about this mention of a merger/buyout is that NCSOFT just finished laying off a bunch of employees.They speculate a huge influx of cash with GW2 estimating 50mil and Blade n Soul soon,but imo it doesn't sound like they have any kind of extra cash floating around to buy,it definitely has to be a merger.

    Never forget 3 mile Island and never trust a government official or company spokesman.

  • WolfynsongWolfynsong Member Posts: 237
    Originally posted by fivoroth

    NCSoft shares sell for $135 not $200. Also it's not only share price that matters. Nintendo has a market cap of $15.3 billion whereas NCsoft only has a market cap of $2.97 billion. Activision Blizzard has a market cap of $12.94 billion.

    My point is NCSoft is no where near as big as Nintendo. You don't just look at share prices.

    Actually, I saw the $135 figure as well... but it was last updated in 2009.  Converting the more recent figures from KRW comes up with $202 per share.

    The market cap difference is what was missing though.  I thought the share prices looked wrong.

  • rdrakkenrdrakken Member Posts: 426

    Seeing as how on Monday I listened to Vivendi's conferrence call where the CEO said ANY divison may be sold off at any moments notice and he actually SAID Activison/Blizzard...which is moronic in my mind seeing as how its one of the few things they have bringing in enough money to keep the entire corporation afloat.

    It was all over the news...he even got ripped for saying it by share holders.

  • rdrakkenrdrakken Member Posts: 426
    Originally posted by fivoroth

    NCSoft shares sell for $135 not $200. Also it's not only share price that matters. Nintendo has a market cap of $15.3 billion whereas NCsoft only has a market cap of $2.97 billion. Activision Blizzard has a market cap of $12.94 billion.

    My point is NCSoft is no where near as big as Nintendo. You don't just look at share prices.

    Its NCsoft/Nexon...not just NCsoft...so you can add Nexon's 1.12 billion and then subtract Nintendo's 647.6 billion Yen revenue from last years massive loss.

    And no, I dont think they will buy Nintendo...they have voice no interest in getting into the hardware market.

  • NephaeriusNephaerius Member UncommonPosts: 1,671
    Originally posted by sammandar

    Dare I think, less say, that this speaks to GW2's strength and success even before release? Am I stretching it? Probably best left for another thread. Either way, all of this reeks of NCsoft's healthy situation, which makes me glad since they own Anet.

    Cheers!

    Just want to point out that they may see a bright future but they posted a loss for Q2 2012

    Steam: Neph

  • ElikalElikal Member UncommonPosts: 7,912
    Originally posted by GamerUntouch
    Nintendo isn't "overseas", EA isn't for sale and Actiblizzard seems really expensive for NCsoft.

    Yeah, I doubt they would call Japan overseas, so none of the mentioned companies. Probably some obscure company we haven't heard of. ^^

    People don't ask questions to get answers - they ask questions to show how smart they are. - Dogbert

  • jpnzjpnz Member Posts: 3,529
    Originally posted by rdrakken

    Seeing as how on Monday I listened to Vivendi's conferrence call where the CEO said ANY divison may be sold off at any moments notice and he actually SAID Activison/Blizzard...which is moronic in my mind seeing as how its one of the few things they have bringing in enough money to keep the entire corporation afloat.

    It was all over the news...he even got ripped for saying it by share holders.

    I doubt anyone with enough Vivendi's shares to actually matter would have been hostile to the thought of selling Acti-Blizz.

    Vivendi's 60% stake in Acti-Blizz doesn't do much except dividends which are in the 'millions' but not enough to justify keeping that much value (8billion or something) locked in a single company's shares.

    Also, Vivendi isn't doing all that well and that 8 billion can be used for other things; like getting their core business not fail as hard. From a business point of view, Vivendi selling Acti-Blizz is attractive for investors.

    However, not many companies have that much cash to buy that stake and really, you don't 'get' anything with it due to how Acti-Blizz is structured.

    I doubt NCSoft will buy a large - medium company like EA, Funcom etc.

    I can see them buying THQ though.

    Gdemami -
    Informing people about your thoughts and impressions is not a review, it's a blog.

  • superbalssuperbals Member Posts: 2

    Hey so as it turns out the Nexon hostile takeover of NCSoft is actually happening. They are now legally entitled to make propose their agenda at the NCSoft conference, and it isn't pretty (for NCSoft, that is). It includes things such as

    - Nexon can nominate candidates for Directorial positions, which will be voted on by shareholders.
    - Nexon basically convincing all shareholders about how shit NCSoft's management is.
    - Nexon demanding that electronic voting procedures be put in place at the conference to allow for a 'fair' vote.
    - Nexon demanding that the large bonuses of senior management positions be exposed (this tactic has been used in past hostile takeovers to shame executives into stepping down)
    - Close down basically everything that isn't turning a direct profit, such as 2 of their office buildings (WildStar might be completely obliterated within weeks)

    tl;dr RIP WILDSTAR

     

    Apologies for the Necro, I didn't realize how old this thread was. Though I find it interesting to read people's reactions from years ago, juxtapositioned onto current events. 

  • thinktank001thinktank001 Member UncommonPosts: 2,144
    Originally posted by superbals

    Apologies for the Necro, I didn't realize how old this thread was. Though I find it interesting to read people's reactions from years ago, juxtapositioned onto current events. 

     

    I agree it was pretty interesting.   IMHO,  I think nexon put themselves in a position for a takeover if they didn't get their way, which brings us to the current situation.   

  • d_20d_20 Member RarePosts: 1,878
    Originally posted by GamerUntouch
    Nintendo isn't "overseas", EA isn't for sale and Actiblizzard seems really expensive for NCsoft.

    It is "overseas" for NC Soft. It's in Japan. NC is Korean.

     

    Why couldn't it be a Chinese company? PWI?

     

    Oops. I participated in the necro.


  • borghive49borghive49 Member RarePosts: 493
    Originally posted by superbals

    Hey so as it turns out the Nexon hostile takeover of NCSoft is actually happening. They are now legally entitled to make propose their agenda at the NCSoft conference, and it isn't pretty (for NCSoft, that is). It includes things such as

    - Nexon can nominate candidates for Directorial positions, which will be voted on by shareholders.
    - Nexon basically convincing all shareholders about how shit NCSoft's management is.
    - Nexon demanding that electronic voting procedures be put in place at the conference to allow for a 'fair' vote.
    - Nexon demanding that the large bonuses of senior management positions be exposed (this tactic has been used in past hostile takeovers to shame executives into stepping down)
    - Close down basically everything that isn't turning a direct profit, such as 2 of their office buildings (WildStar might be completely obliterated within weeks)

    tl;dr RIP WILDSTAR

     

    Apologies for the Necro, I didn't realize how old this thread was. Though I find it interesting to read people's reactions from years ago, juxtapositioned onto current events. 

    necrophiliac

  • CelciusCelcius Member RarePosts: 1,878
    Don't mind bcbully. He just doesn't like to admit when he is wrong. I would say he has been proven wrong multiple times in this thread, but hey! Nothing wrong with being wrong. You show more strength by admitting it. 
  • thinktank001thinktank001 Member UncommonPosts: 2,144
    Originally posted by Celcius
    Don't mind bcbully. He just doesn't like to admit when he is wrong. I would say he has been proven wrong multiple times in this thread, but hey! Nothing wrong with being wrong. You show more strength by admitting it. 

     

    You might want to google " nexon takeover ncsoft ", since it just started 2 weeks ago.  

  • PemminPemmin Member UncommonPosts: 623

    other

    EA and activ-blizzard are simply too big for ncsoft/nixon to get a majority share of.

    doubt Nintendo either simply because they don't seem to be the types to get into hardware.

    overseas could really be anyone.

  • Azaron_NightbladeAzaron_Nightblade Member EpicPosts: 4,829

    Other; Gameforge.

    They use them often enough for their titles over here in Europe. =P

    My SWTOR referral link for those wanting to give the game a try. (Newbies get a welcome package while returning players get a few account upgrades to help with their preferred status.)

    https://www.ashesofcreation.com/ref/Callaron/

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