As reported by Reuters, Nintendo Co stock rose 4.6 percent after a speculative article was released, suggesting that Apple buy up Nintendo as part of its future buying moves.
According to Tae Kim, writing for Barron’s, Apple is looking for an opportunity to spend its $130 billion in net cash to achieve the company’s goal of “net-cash neutral.” Gaming is one sector of the technology market Apple has yet to foray into (we don’t talk about the Bandai Pippin), and acquisition of an established and well-loved gaming system might just be the move Apple needs to make.
Market research firm Newzoo indicates the global gaming market grew 11% last year and projects it should continue to rise about 9% annually the next few years, raising the market to $174 billion dollars in spending. Forecasts show Nintendo generating almost $13 billion dollars in sales over the next year, a 7% stake in the overall global gaming sales. On paper, an acquisition seems like an advantageous move for Apple, but whether or not the move is right for Nintendo is another question. Investors seem to think so, and they acted accordingly to contribute to the rise in stock at end of day closing in Japan on Jan. 14, 2019.
The rally behind the rising Nintendo stock will likely be short-lived as the potential for a merger or acquisition are completely unclear and at this point purely based on media speculation.
What are your thoughts on a potential for merger? Would you like to see Nintendo gaming reach a wider platform through Apple devices beyond mobile apps? Let us know your thoughts in the comments below!
Brie likes to game, and by game she means mash on the buttons and holler at the TV. She is, however, very competitive and will trash talk you ruthlessly even if she doesn’t know what she’s doing. Probably best for her to stick to collaborative games on game night.