Ben Gilbert: evaluation

Transcript context

…This is what Yamauchi IV I guess at this point in time, Hiroshi, is looking for. This is the opportunity. Not only does this open up a new market and a new distribution channel, the kids market, the toys market, the legitimate retail for Nintendo. There's just an incredible opportunity to draft off the Disney brand. They start with playing cards, then they start licensing from Disney, other kids toys, to sell in Japan. Then they go to the retailers and they say, hey, you like carrying these Disney toys. If you're going to carry the Disney toys, you need to carry some Nintendo branded toys along with them. It is amazing. It's the story that we tell over and over and over again on Acquired, where you acquire something, some asset that then gives you a leg-up in a different part of your business. Now it's a self fulfilling prophecy, where that other part of your business is made better. By having a scarce commodity—Disney branded cards—they get power over the distributors. Now you actually have a reason to be in stores. Now that you're in stores, it doesn't matter how you got there. You have that channel. You have those relationships. Especially if you can hold them captive and say, you have to distribute our stuff with Disney stuff, then it's a pretty good bargaining position. During the 1960s, Nintendo transforms itself into a Japanese toy company. They are making things like the ultra hand, which is an extended grabber. I know you did some research on this.…

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