The Impact of the Acquisition of BUNGIE on SONY

Yiwei Gao, Yuxi Li and Guiwan Wu ()
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Yiwei Gao: Hefei No, High School
Yuxi Li: Malvern College Qingdao
Guiwan Wu: Yew Wah International Education School of Guangzhou

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 527-533 from Springer

Abstract: 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.

Keywords: “SONY”; “BUNGIE”; “acquisition”; “SWOT analysis”; “synergy effect”; “business”; “management” (search for similar items in EconPapers)
Date: 2022
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DOI: 10.2991/978-94-6463-036-7_78

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