Sony liquidates more assets, drops DeNA shares

[Dodece]

Sony didn't acquire these stocks directly. They were the byproduct of their acquisition of So Net last fall. Their sale effectively reduces the cost of that acquisition, but at the same time it does devalue that acquisition. Cash on hand can be a good thing, but Sony just sold a revenue stream. Selling the buildings increased their cost of doing business. While selling stakes in other companies removes good long term revenue streams. Others have hit the nail on the head.

Sony is on a tear of a selling spree to fund new business ventures. They are effectively mortgaging their future on the hope of having a big short term payday. If it works Sony will be able to replace what they have lost through these sales plus some. If it doesn't work Sony will have expedited its demise by months if not years. Their diversified business streams, and lower costs of doing business. Actually decreased losses in the past. Remove those things, and the losses stop getting cushioned.

I am somewhat conflicted about whether this strategy is the right choice. On the one hand Sony has to make a move if it wants to stay relevant in the marketplace. After a certain point they wouldn't have any chance of addressing the erosion in their core business. On the other hand however the global economy is fairly anemic. The world just can't seem to shake this long as all hell economic downturn. Every time it looks like we are about to break out into sunshine. Some crisis somewhere or other causes a panic. That sets a recovery back by months.

Sony needs to make a move, but biding its time would be much safer. Sony seems to be damned if they do, and damned if they don't. They can't be both safe and successful. They can only be one or the other, and still get the opposite outcome. Well it is going to make things a bit more even moving forward at least in the short term. I was wondering how Sony was going to be able to contend with Microsoft and Nintendo this coming generation. Seeing as they are filthy rich off of gaming by comparison. What Sony really needed was some money to do things with, and now they seemingly have some.