This has more to do with Sony wanting to double down on games and nothing to do with SPE. Sony itself was never a rumor for sale, SPE was.
A bit off topic, but this bodes with what I've been thinking for a couple of years. What we are seeing now is just the transformation that is taking place. Traditional game and movie companies should be very concerned if FAANG (plus Microsoft) are serious about gaming (streaming and dedicated), streaming video, and live sports. Traditional companies need to consolidate - and consolidate fast - or be acquired themselves.
There's a reason Iger and Murdoch talked in depth about scale and ability to compete.
A quick look will tell us the situation:
For streaming video we have:
Amazon = Amazon prime, LOTR series coming soon
Apple = Announcement on the 25th
Facebook = like youtube, ready to go at anytime. Rumored to be looking into it.
Google = Youtube red, which they haven't kicked into high gear, but if anyone can kick premium streaming video into high gear quick is Youtube. They would need to invest in content and it's a wrap
Microsoft = nothing.....yet. Azure gets them ready at a moment's notice
Netflix = worldwide leader
For games/streaming games
Amazon = Amazon studio, not serious about gaming yet. No streaming gaming plans announced so far. Ready at a moment's notice with AWS
Apple = app store is tremendous for mobile gaming, but not serious about gaming yet.
Facebook = games used to be bigger on this platform. Unknown plans. Big VR plans a couple of years ago.
Google = Announcement on the 19th. Plans for streaming and dedicated
Microsoft = Xbox, one of the three dedicated console. Big plans for streaming. Purchased some very good game developers very recently
Netflix = Nothing yet, but rumored to have considered it. Given the competition coming for streaming video, they need to diversify
For live sports
Amazon = Bezos
is looking. They even hired an
ESPN veteran last year. Minority buyers of YES (which is being sold by Disney)
Apple = Nothing yet.
Facebook = Nothing yet, but a lot of smaller sports already stream on it. Rumored to have been interested in NFL rights
Google = Nothing yet, but a lot of smaller sports already stream on it that I sometimes watch. UFC weigh ins get about 65K+ viewers. Oftentimes a lot more. Rumored to have been interested in NFL rights
Microsoft = Nothing yet
Netflix = Nothing yet, but rumored to have considered it. Given the competition coming for streaming video, they need to diversify
Biggest acquisitions
Amazon = Whole Foods (14B), Ring(1.5B), Zappos (1.2B), Twitch (1B)
Apple = Beats(4B)
Facebook = WhatsApp(19B), Oculus Rift (2B), Instagram(1B)
Google = Motorola (~12.5B), Nest (3.2B), Doubleclick (3.1B), Youtube(1.65B), Waze(1B)
Microsoft = LinkedIn(26B), Skype (8.5B), Github(7.5B), Mojang(2.5B)
Netflix = N/A
Let's take a look at market cap, revenue, and net profit of some major players in both industries and the above.
Japanese numbers are approximate due to JPY to USD conversion.
These tech giants absolutely dwarf the traditional companies. Netflix is the lone exception of the FAANGs, but their growth has been astounding and it'll continue to climb. If they are serious about it, they can purchase developers, publishers, movie companies without a problem. The writing is 200% on the wall. It's one of the reasons I'm confused why Iger said no to Disney publishing and developing games at the most recent financial call.
It is why I laughed when purists said Disney buying Fox (and before that Lucas, Marvel, Pixar) was selling out and whatnot. In my opinion Disney should be looking seriously at some of these game companies with attractive IPs after they balance their sheets.