Sony Group (NYSE: SONY) has inked a deal to acquire its long-time partner and creator of the Halo and Destiny games, Bungie, Inc., for $3.6 billion.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Following the news, shares of the Japanese multinational conglomerate corporation based in Tokyo, Japan, gained 4.5% to close at $111.66 on January 31.
Synergies of the Deal
Based in Washington, U.S., Bungie is a leading video game developer well known for creating some of the industry’s highest quality gameplay experiences. At present, it is focused on expanding the Destiny universe by developing the popular Destiny 2.
The addition of Bungie will complement Sony’s PlayStation franchise and strengthen its game services and technological expertise.
Further, Sony with its entertainment and technology assets, will support Bungie’s capabilities to create iconic gaming worlds across multiple platforms, thereby leading the global multimedia entertainment market.
Upon completion of the acquisition, which is subject to certain regulatory approvals, Bungie will function as an independent unit of Sony Interactive Entertainment.
Management Weighs In
Sony Group CEO, Kenichiro Yoshida, commented, “Bungie has created and continues to evolve some of the world’s most beloved videogame franchises and, by aligning its values with people’s desire to share gameplay experiences, they bring together millions of people around the world.”
Sony Interactive Entertainment CEO, Jim Ryan, further added “This is an important step in our strategy to expand the reach of PlayStation to a much wider audience. Like Bungie, our community is core to PlayStation’s DNA, and our shared passion for the gamer and building the best place to play will now evolve even further.”
Wall Street’s Take
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 2 Buys.
Investors Weigh In
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Sony, with 3.3% of investors increasing their exposure to Sony stock over the past 30 days.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Church & Dwight Posts Upbeat Q4 Results, Shares Rise 4.4%
Autoliv Beats Q4 Earnings Expectations
LyondellBasell Reports Mixed Q4 Results
