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
Let’s say that all kinds of securities and anti-trust laws didn’t exist. To buy 51% of the shares, you would have to find 51% of people who are willing to sell at a price that is acceptable to you. Once word gets out that Microsoft is trying to buy 51% of Nintendo, and you hear they’ve already accumulated 30%, what are you going to do? Jack the price up!
So today Nintendo is selling for $10 a share, but that’s the lowest anyone is willing to sell it for. As you buy out the lower priced sellers, you’re going to need to pay more and more a) because the stock holder already believes it worth more, and b) in the “supply-demand equation” you’re really pushing up demand, which will inflate the price.
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