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Apple to buy Sony?

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kowenicki said:
Alby_da_Wolf said:
Being taken over would be good for Sony, but not by Apple, MS, Nintendo, Samsung, LG or Google. It should be bought by some Japanese giant not inside gaming yet, if not marginally, to have maximum interest in managing PS brand at its best, and with a consumer electronics division not well known as Sony, or not in the same market segment, that could benefit from making it its mid-high-end and luxury brand.


such as?


There's quite a wide choice.

An obvious candidate could be Mitsui, the same keiretsu Sony itself belongs to, absorbing it. As much obvious and maybe even better could be Sumitomo, that already has some financial joint-ventures with Mitsui.
Another could be Mitsubishi. Or Fuyo. Or others, as some keiretsu have several big common members. Or simply one of the biggest electronics members of the most powerful keiretsus, not a whole keiretsu. Whichever would do it, Sony could benefit from precious economies of scale in display components, and it could ditch altogether the mid-low end, where it can't really compete, let alone profit. BTW, most Japanese electronics giants are well-known in just a small subset of developed countries. Maybe the only ones with too much overlapping could be Sharp and Panasonic for displays, these two could even benefit more from killing Sony TV and display division altogether and keep only the rest, but all the other possible candidates should just cut the parts that aren't profiting and that have no hope of ever being brought back to do it. Most probably some candidates could benefit from separating PS and Sony brand, so that PS brand could provide wider synergies with all the consumer electronics brands of the group, without privileging just Sony.



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kowenicki said:
NYCrysis said:
Kasz216 said:
DamnTastic said:
 

I'm not so sure.

While the likely dominance of the PS4 hasn't been fully priced in... a LOT of Sony's stock gain recently has just been on the assumption that they will benefit from a successful Abenomics plan.

Meanwhile, abenomics seems to be having some issues in that the companies that have made tons of money off of it... are just hanging on to their cash reserves.

Sony meanwhile... is still in debt... and it's structural reforms seem to be slow going.   The most noteable being the cancelation of the OLED TV product line and the selling of Gracenote... for like 100 Million or so less then they paid for it.  (Which was like $200 million) so they haven't exactly cut that much fat.

 

Sony isn't quite a Zombie firm, it does have a lot of debt... and one of the things Abenomics plans to do is to let zombie firms fail by allowing lending rates to increase.

If this hits before Sony hits year round profitability that could greatly increase costs.

Sony is very much a gamble right now.

 

 

But don't forget that Sony as a whole is valued much less than its parts
A Sony with only Movies, music, imaging, playstation, financials, and now mobile (all profitable divisions at $1.5-2 billion a year) would have a market value of a good 50 billion. And remember sony has assets valued at over a $150 Billion.


and debts of $127bn with stockholder equity of $23bn.... leaving net assets of just $10bn.  (half of what it was in 2011)

 


Pretty much.   Not to mention, that if sony liquidated their unprofitable divisions wholesale... that debt would rise, and revenue would shrink.

People in the US are used to at-will employment but that's not the case in most the world.   Japan has a very strong "Employment for "life" culture where it's VERY hard to fire people.

Hence the rumors of rooms and departments in sony and other ailing companies meant to annoy people into resigning.

 

So really, the whole is worth less then the sum of it's parts.


Sony in general would just be a bad buy for any company.  It's just too big, complicated and has too many unsolved questions.

That doesn't make it a bad company persay.  Just not really something you want to aquire.

 

When aquring a company you basically want a company that just does a couple of things.

 



I don't think that's going to happen,but it would be interesting if it did. I could only imagine all the meltdowns.



Apple buying Sony is likely the best option:

According to Macroaxis, a financial engineering tool website that analyzes companies and determines their well-being, Sony Entertainment has a discouraging 79% chance of going bankrupt in the next 2 years. (You can go here if you want to learn more about Macroaxis and how they operate.)

“Based on latest financial disclosure Sony Corporation has Probability Of Bankruptcy of 78%. This is 182.34% higher than that of Consumer Goods sector, and 163.57% higher than that of Electronic Equipment industry, The Probability Of Bankruptcy for all stocks is 122.48% lower than the firm.”

368f0d42aaa83d013e9719f758e2ed95 600x236 Macroaxis: Sony Has 79% Chance of Going Bankrupt in the Next 2 YearsWhile it wouldn’t be factual to say that SNE will fail in the next 2 years (it’s all a guess), the 78.49% figure is based off of real, actual numbers. Many will consider this number overly inflated, but it all doesn’t sound too far-fetched when you take into consideration some of the things that have been happening over in Sony Land. Last year, Sony’s market value was slashed down to “junk” status, and they’ve sold multiple HQ buildings as well.

Not to mention, Sony still hasn’t recovered from all of the money they’ve lost on the PS3, and the Vita is still not profitable and isn’t selling as well as it should.

For comparative purposes, Macroaxis is stating that Nintendo has only a 22% chance of failing in the next 2 years, which is very ironic considering the fact that the majority of gamers and journalists online are always claiming that Nintendo is in imminent danger, when in reality Nintendo is very healthy and Sony is the actually the one closest to failing out of the console manufacturers. Microsoft is sitting off to the side with only 1% chance of failure.

http://gaminrealm.com/2013/12/30/sony-79-chance-bankrupt-2-years/