On News.com staff writer Marguerite Reardon has written an analysis piece that explores the possibility of internet giant Cisco Systems, Inc. buying Nintendo. Here´s what she writes:
Already Cisco has announced plans to spend $6.9 billion on cable set-top maker Scientific-Atlanta. When the deal closes in the next couple of months, it will be the third significant acquisition Silicon Valley-based Cisco has made in the consumer realm. The question now is, who's next? (...)Other potential candidates include TiVo, Sling Media and Ruckus Wireless. If Cisco really do have their eye on Nintendo, they are unlikely to make a move soon. Murray Arenson, a senior analyst at Ferris Baker Watts, is quoted in the same article:
Another possible acquisition candidate for Cisco is Nintendo, the No. 3 game console maker in the U.S. A stretch? Not really. Microsoft, which is emerging as a key competitor to Cisco in the home entertainment market, is already in this market with the Xbox 360. Gaming has already proved to be a strong application for broadband, so it makes sense that Cisco would want to own a game device to help drive more traffic on its network. With its popular GameBoy product, Nintendo would also provide Cisco an entree into the mobile-handheld market.
"Cisco will go slowly in digesting Scientific-Atlanta. There are still a lot of hanging question marks to answer before they go out and acquire anything else in this market."Also, a Nintendo takeover would be no easy feat. I cannot find any reliable info on the total value of the company. Estimates on various forums range from thirty to forty billion US dollars. Either way, they seem to be well prepared. In June 2003, Nintendo repurchased almost 8 million of their own shares. Late last year, they bought another 2 million. Such moves are commonly seen as protecting themselves against possible takeovers.
When Bill Gates expressed his continued interest in buying Nintendo in the summer of 2004, Games Industry reaffirmed that the majority of shares are held by former president Hiroshi Yamauchi. They also called Nintendo ´the most profitable business in the games industry´.
Source: News.com, IGN, AdvancedMN, Games Industry
Image source: Cisco
Thanks to: Gamespot