The Impact of the Acquisition of BUNGIE on SONY

DOI

10.2991/978-94-6463-036-7_78How to use a DOI?

Keywords

“SONY”; “BUNGIE”; “acquisition”; “SWOT analysis”; “synergy effect”; “business”; “management”

Abstract

The background of this paper was the announcement of the acquisition of game manufacturer BUNGIE by SONY. The direction of the research was based on studying the impact of the acquisition on SONY in the global game industry. The trend of small game companies being acquired by large companies in the game industry has become more and more obvious recently. This paper analyzed the post-acquisition impact on SONY around synergy effects. The study explained the market position, business model, business strategy, and key factors of the transaction for SONY and BUNGIE respectively. In the prevailing market situation, SONY and BUNGIE each had their own needs, and SONY wanted to close the acquisition gap with Microsoft. The article focused on the research desire of “pointing out the creation of synergy through proper corporate strategic management” and also illustrates the importance of synergy in business operations. This article analyzed the situation after SONY acquires BUNGIE through SWOT. The advantages of SONY are to create an environment for BUNGIE, develop new games, improve SONY's technology, and occupy the market in this field, while SONY can attract more BUNGIE players to PlayStation and buy SONY's products. The disadvantages of SONY are different management issues between divisions; the significance of the study is that the net cash flow exceeds the sum of the expected cash flows of the two companies, indicating that the combined company performs better than expected when the two companies existed independently.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yiwei Gao
AU  - Yuxi Li
AU  - Guiwan Wu
PY  - 2022
DA  - 2022/12/31
TI  - The Impact of the Acquisition of BUNGIE on SONY
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 527
EP  - 533
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_78
DO  - 10.2991/978-94-6463-036-7_78
ID  - Gao2022
ER  -