Apple-Nintendo? Don't Bet on It


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Joystiq.com provides a good, skeptical slant on the widely-rumored Apple-Nintendo merger or acquisition. So, why wouldn't the two companies come together? Joystiq identifies four key reasons:

1. Nintendo makes a profit.

2. Nintendo Wii is a potential major hit.

3. Nintendo does not want to sell. Even Bill Gates hasn't got his hands on the company.

4. Keiretsu. Takeovers of Japanese companies is notoriously difficult (unless the company is Mazda or Nissan and the situation is so hopeless they want to be taken over.

On the other side of the ledger, Apple is simply rolling in cash right now and has made relatively small (Powerschool - now sold; eMagic) strategic acquisitions in certain key market sectors. Powerschool never made any money. eMagic was purchased for its tech and its tie-ins with Apple's pro audio strategy. But these were relatively small beer.

Then there was the widely-reported rumor that Apple planned a huge purchase - Vivendi's Universal Music Group. Vivendi was selling (for about $6-7 billion), but Apple's stock plunged on the rumor and the purchase was never on the cards. Ever.

All of this stems from reports relating to an Apple games division. Frankly, wherever possible, Apple does things in-house. There's still a touch of the NIH (Not Invented Here) syndrome at Cupertino.