Train wreck said:
Nem said:
kowenicki said:
Sony raising $1.9bn.
So:
$749 million to invest in an expansion in CMOS
$624 million to repay debt used to buy into Olympus
$125 million to repay debt used to help buy Gaikai
$375 million to repay the maturity of some other bonds maturing next year (a future debt)
So of the 1.9bn they are raising here, $1.1bn is simply to repay other debt. This is what happens when credit rating agencies lower your rating. So to all those saying rating agencies don't matter.... here is your answer. I didnt realise they had borrowd to buy into Olympus and Gaikai, I'll read the accounts better next time.
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Probably only those not living in europe didnt know that already. Rating agencies cutting your rating = you enter a negativity spiral. In europe's case, countries wont dissolve, but companies do.
Sony is in alot of trouble, wich is why i am always surprised when they say they are relaxed and waiting for microsoft to make the first move. The PS4 will save or doom the company. I dont know why they dont cut-off the TV division at this point if its dragging everything else down. Theres no sense in keeping investing on it.
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The ps4 will save or doom the company...ok a division worth about 11% of Sony's overall revenue is going to curtail it...got it.
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You dont understand how the markets work. The playstation brand is Sony's most valuable brand. Valuable brands= potencial ability to generate revenue = garantee for company's ability to pay its debts and how risky it is to loan them money and get it payed back. If the PS4 failed the Playstation brand would plummet in value and it would be near impossible for Sony to obtain further credit. I know you want to ignore reality and pretend everything is well, but it isnt. Its already really difficult for Sony to obtain credit, and that is why they are beeing forced to use this method on the article.
Sony is in real trouble, wether you wish to see it or not. On the bright side, i am hopeful they can turn things around with the PS4.
