Microsoft could have bought Nintendo before Bethesda or Activision: why didn’t it do it

Buying Nintendo was a great goal that Phil Spencer had in mind., the leader of Xbox, before the acquisition of ZeniMax Media (Bethesda) and Activision Blizzard. This became known after the publication of confidential documents related to the recent lawsuit between Microsoft and the US Federal Trade Commission (FTC).

Among the files in question, which also revealed what the next Xbox console will be and when it will be released, was an email between Spencer and other executives at the Redmond firm discussing the possibility. The exchange took place in early August 2020, just over a month before the company announced an agreement to take over the firm responsible for Rock, fall out And star field.

An interesting scenario is the possible purchase of Nintendo by Microsoft. In the email in question, Phil Spencer responds to concerns raised about this by Takeshi Numoto, commercial director of an American company. The piece of information that provides context, and that is important to remember, is that at the time, people led by Satya Nadella were in the midst of trying to buy TikTok, but it ultimately didn’t come to fruition.

“Takeshi, I completely agree that Nintendo is our BIGGEST asset in the gaming space, and gaming is our most likely path to consumer relevance today. I have had numerous conversations with Nintendo management about working more closely, and I feel that if any American company had a chance with Nintendo, we would probably be in a better position,” the Xbox leader said.

Microsoft and its interest in buying Nintendo

Why didn’t Microsoft make an official takeover bid for Nintendo then? The answer is simple and given by Phil Spencer himself in the same email. According to the executive, The Japanese were “sitting on a big mountain of money”. Thus, he argued that Nintendo’s board of directors was not interested in increasing market share or increasing its stock price.

The Xbox leader said he doesn’t see the possibility of buying Nintendo in the near future, but doesn’t rule out continuing the game in the long term. In fact, Phil Spencer mentioned that ValueAct, an investment firm with a stake in Microsoft, is buying shares in the Japanese company and that this could open the door to a more direct relationship between both companies.

Either way, the executive made it clear that if Microsoft ever succeeded in acquiring Nintendo, it would be a major milestone, both personally and corporately. “It took Nintendo a long time to realize that its future existed outside of its own hardware. Too long…”– he pointed out.

Without a doubt, Phil Spencer’s words can make a lot of noise in the video game industry. And they make you wonder whether Microsoft will actually be able – both in 2020 and now – to go out and buy Nintendo. Believe it or not, the answer is yes..

Nintendo ended 2020 with a slightly higher market valuation $76 billion. This is not only a very significant increase from 2019’s $48.11 billion, but it is also the most notable financial moment in a decade. Let us remember that the period 2010-2020 was a period of significant ups and downs for the company. In fact, its weakest point was in 2014, when it was worth “only” $12.49 billion.

Today, Nintendo is valued at $50.97 billion.. This figure is significantly lower than the $68.7 billion that Microsoft offered in early 2022 to acquire Activision Blizzard. Of course, not everything depends on the weight of the bank account. Besides money Convincing Nintendo to buy would be very difficult; both for the sake of brand prestige and for the sake of tradition or heritage. That’s why Spencer indicated in an email that he doesn’t believe an acquisition through “hostile action” is possible.

And Valv?

Another notable detail revealed in the document is that, in addition to Nintendo, Microsoft analyzed the feasibility of purchasing Valve. Phil Spencer mentioned in passing that he had submitted prospectuses for both options to Microsoft’s board of directors and that the response received was positive if and when the opportunity arose.

But not only that. The report also clarifies that Redmond is still discussing whether they should acquire ZeniMax Media (Bethesda) or Warner Brothers Interactive. The Xbox leader noted that since Microsoft was trying to buy TikTok, he raised the possibility of ending both negotiations with Satya Nadella. However, the company’s CEO gave him the go-ahead to continue.

Spencer then noted that there were still issues to be resolved. The problem with Warner Bros. was that Microsoft did not receive any intellectual property. In Bethesda’s case, the main challenge was to meet the value expectations of its founders. In the end, the scales tipped towards the latter. What about Nintendo? At the moment, the purchase of a Japanese company remains the dream of Phil Spencer and company.. We will have to see if new signs appear in the future.

Publishing confidential documents without censoring sensitive data sparks sparks between Microsoft and the Federal Trade Commission. In accordance with NBCNewsThe Federal Trade Commission disclaimed any responsibility. In fact, the representative assured that it was Redmond residents who mistakenly uploaded the files to the website of the Federal Court for the Northern District of California.