Rumor squashed, MS not buying Capcom

Thank god this isn't true. Microsoft is attempting dominate the whole world.

Read this:

http://www.roughlydrafted.com/RD/Q4.06/F6DC3D84-5B4D-43D4-B9ED-1F2033A895DA.html

well... that's pretty much what companies say right before they get bought by a bigger company. You don't discuss this kind of thing, or want it going public before your deals are inked.

...and also note the spokesperson didn't deny it. They just mentioned that the rumor has been around a while and how they think it got started.

So really, nothing has changed rumor wise.

I agree with #2. This purchase would have major impact to the stock prices of both companies and the deal would NEVER be confirmed in a an interview with a video game site. The fact that neither side flately denied it is interesting. MS just refused to comment with a stock answer and Capcom didn't say they were not for sale just acknowledged the rumor was old. Further I would think Capcom would benefit from high speculation of an MS purchase as it would likely drive up the stock. I find the possibility of this rumor to be quite good from a buisness sense.

Capcom recently closed the studio that did Viewtiful Joe and Okami due to cashflow issues. I hear constantly that Capcom makes to much "profit" to be purchased and they are to big to be purchased. That has nothing to do with Cashflow. I have seen numerous companies show high revenue even high profit but not cashflow. Just because you are recognizing revenue does not mean you always recieving the cash you need to run your business. If, I don't know if this true, Capcom has some bad supplier terms with customers they may really have a lack of cash in their bank account to cover their current expenses.

MS has NO ZERO NONE cashflow issues. They can heat their half caf skinny mocha chocha lattes by burning big stacks of benjamins. The last time I looked at an MS quarterly they had somewhere around $35 Billion in cash reserves. That is more than enough to purchase Capcom. Not to mention that any bank anywhere in the world will loan MS anything they want. They have no debt currently. By becoming part of MS Capcom would never again have to worry about cashflow. Capcom could just focus on making bigger and more expensive games flush with MS cash to cover the costs. Capcoms shareholders would also make a nice return on their investment in Capcom and then hold large shares in possibly the most stable company in the world. Pretty good reasons for Capcom to sell.

MS would certainly sell more units in Japan if they were the only place that Japanesse gamers can buy their next biohazard, breath of fire, and Onimusha. US gamers would also be much more inclinded to stick a white box under their TV's. Capcom's great backlog of 8 bit and 16 bit games would also give Live Arcade a strong answer to the virtual console. I would love to play Strider or Trojan or some classic Megaman on the Arcade. Pretty good reason to buy.

If this rumor is true look for it to be annouced after the end of trading on the Nikkei exchange as Capcom's stock will be the most affected. Of course it could also come after the end of NASDAQ trading as well.

In no way saying I think this is definetly happening just that there are some signs that real world business needs could facilitate the sale. The ravings of Fanboys around the world will be priceless if this does happen.

@1.

Another Apple Fanboy running scared. BTW, I read that acticle and it was your standard anti MS rag/pro apple jizzle.

wheres the spokesperson denying the rumor part? i didn't see it in the article on gamespot.

You also have to consider that it'll be difficult for the buy-out to get support, assuming it isn't a hostile takeover.

The Japanese are known to be very protective of their own companies, and no doubt would try and oppose some sort of proposed buyout. It made huge news that the new Sony CEO would be someone who wasn't Japanese. And of course there were many, many people (and workers) who opposed that decision.

Like the other guy said... no denial... it could be happening, but it could take years for the stuff to be ironed out