Sony (SNE) Will Have To Sell Its Studio Business, Could Get $6 Billion

[vitoaf27]

SlorgNet said:

vaio said:

Sony (SNE) Will Have To Sell Its Studio Business, Could Get $6 Billion

Sony (SNE) is in trouble, and it is very deep trouble. For the fiscal year ending March 31, the conglomerate lost more than $1 billion on $79 billion in revenue. Sales were down by over 12%

Sony could do several things with the cash. It might give shareholders who are tired of the company’s constant struggles a larger dividend or share buyback. Sony’s market cap is only $28 billion, so it could purchase a significant portion of its shares. Sony could also use the money for its capital expenditures or to reduce its modest debt. The cash could certainly be used for strategic acquisitions to buttress its flagging electronics and game divisions.

Douglas A. McIntrye

http://247wallst.com/2009/06/07/sony-sne-will-have-to-sell-its-studio-business/

This is pure rentier idiocy. Total losses are under 1% of annual sales, far less than many other companies, despite the depth of the recession. Sony doesn't have much debt and has plenty of cash flow, so it doesn't need the extra cash. This notion of giving the money to "shareholders" is a sick joke -- a polite way of saying, forking billions over to a bunch of greedy, self-interested oligarchic scum who don't know a frame-rate from an interest rate, and whose speculative folly screwed up the world-economy so bad, it needed a $4 trillion (and counting) government bailout financed by ordinary taxpayers like you and me.

Here's a better idea: instead of financing the yachts and private jets of Wall Street overlords, Sony does what it always does -- spend money on world-class studios, top-tier technology and great games.

Best post of this thread, by far!

Though I wouldn't be surprised if Sony execs also have many luxury items as well.