Eli5 Couldnt Microsoft just buy all shares of Nintendo?

829 views

There is this story how Microsoft wanted/wants to buy Nintendo but was laughed out of the room. Is nintendo not a stock company? Couldnt Microsoft just buy 51% of all the shares? From what Ive seen the biggest shareholder is a japanese bank with 17%. Its not like somebody already owns the half.

In: 1530

22 Answers

Anonymous 0 Comments

1) The FTC and the Justice Department might block the acquisition due to them acquiring a monopoly on the video game industry

2) many shareholders don’t want a competitor to buy them out unless they are paying significantly over what the share value currently is

3) many corporations have “poison pills” in place that require somebody who purchases more than x amount of shares to pay substantially more per share afterwards than a normal buyer, so it becomes more expensive to outright buy the company than compete against it

You are viewing 1 out of 22 answers, click here to view all answers.