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This would be expensive
Nintendo would be Disney’s second priciest intellectual property grab to date. A fairly straightforward way to ballpark a company’s worth is to multiply their net revenue by three to four times. This puts Nintendo somewhere in the neighborhood of a $11 to $22 billion buyout based on the numbers of fiscal 2014
This is the lowest it would cost to buy Nintendo in seven years, since the company is in a slump and bleeding cash. If Disney were to buy the company, this is the time. Things are looking up for Nintendo in some ways, but coming off a long stretch of losses and struggling hardware sales there's only so much big games can do to help the company. Nintendo is at a historic weak point, making the company very attractive for acquisition at a good price.
It would still cost a ton of money. To put the $19 billion-ish price into an easy to digest number, buying Nintendo would cost Disney more money than they paid for Pixar, Star Wars and Marvel,combined. It’s a huge purchase, unless you’re Disney.
Disney’s current Net Worth is hovering around the $142 billion mark, and the profit they made from the last two fiscal years would allow them to buy Nintendo with cash, if it came to that. And it wouldn’t.
The last time Disney made an acquisition this size was when they paid $19 billion for ABC in 1996. With inflation, that purchase would have cost about $29 billion today. Disney is no stranger to huge, ambitious acquisitions.
Disney — using the same game plan they used for Pixar, Marvel, and Star Wars — could recoup that cost within five years. The secret is that Disney wouldn't be investing in the video game business, they would be furthering their already near monopoly on characters.
Disney wouldn't be buying the Wii U, they'd be buying Mario
Disney is a marvel of intellectual property, and this is one area in which Nintendo excels.
The Marvel Universe Films have blown away just about everything comic-book-related save the most recent Batman films and now here comes the new Star Wars films and the Rebels TV show.
Disney has always been an impressive company, but the way it has managed its intellectual property in the post-Lasseter era has been amazing. Even the direct-to-video model has seen a huge jump in quality and organization.
It’s a huge purchase, unless you’re Disney
Disney has evolved into an unstoppable Juggernaut of intellectual property. They've bought Pixar, Marvel and Star Wars in the past ten years, and were even rumored to be in pursuit of Studio Ghibli at one point in 2013. What these companies have in common is a stable of characters that audiences love, that could be leveraged in multiple ways.
If you want to look at what Disney can do for a character, look at the mainstream's acceptance of Iron Man. In 2008, Iron Man was known mostly to comic book fans and was considered to be something of a B-List hero in comparison to someone like Wolverine. Now Iron Man is one of the best known, and most profitable, characters in Marvel's impressive arsenal. All it took was a few great movies and a huge marketing push.
Disney wouldn’t see Nintendo as a hardware company or even a software company, just as they didn't see Marvel as a comic book company. Nintendo holds some of the best intellectual property in the world, from Mario to Link. Kids are still wearing Mario and Luigi shirts next to their classmates wearing Minecraft and Iron Man logos.
There are incredible properties, from Metroid to F-Zero, that would offer Disney huge opportunities in everything from film to theme park attractions. Nintendo, when looked at through the lens of an acquisition, is a bundle of amazing, well-known characters and worlds that are criminally underused.
Nintendo is the last company that owns characters that could compete with the worlds that Disney already controls, and adding Mario to the Disney original characters, Marvel superheroes and Star Wars would mean that Disney all but owns entertainment as a whole.
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This could be huge for both Disney and Nintendo.. imagine a Mario, Zelda, or Metroid film actually very well made.. imagine a Wreck it Ralph sequel with Mario as one of the main characters.. imagine the interactions between the Disney, Pixar, Marvel, Nintendo, and Star Wars worlds..
What do you guys think?
