Many Maryland residents may remember playing Nintendo video games in their youth. Some may even still play Nintendo. However, with online gaming gaining in popularity and smartphone gaming apps such as Angry Birds now all the rage, more and more people are turning away from video game consoles. This has caused Nintendo's business to decline. It is hoping to save itself with the help of mergers and acquisitions.
Buying a business can save Nintendo from financial disaster, but which company would be a good choice? Experts believe a merger with Sega would be ideal. The former competitor is still relevant and has many ideas in the works, but not enough capital to back them. In addition, Sega is one of the few video game developers left that is in line with Nintendo's family-friendly personality. This acquisition wouldn't be out of picture since the two have worked together in the past.
If Sega is out of the question, then perhaps an independent game developer would be next in line. There are many of them out there that would appeal to nostalgic gamers - Nintendo's core audience.
All Business acquisitions come with some sort of potential liability. No purchase or sale of a business is going to guarantee revenues. There are also hidden risks to consider. A merger could turn off consumers and reduce Nintendo's sales even more.
It is a good idea for businesses looking to buy another business to preserve their legal rights. Companies want to get the best deal possible, so an accurate valuation is important. A thorough assessment can help a company make the best decision in order to save or grow a company.
Source: Geek, "To save itself from ruin, Nintendo considers mergers and acquisitions" James Plafke, Jan. 31, 2014