| huiii said: I'm not trying to jump in on the argument betwen you and kowen (in fact i agree that restructuring is costly and the effects of it are only seen later on) but buying anything (gaikai, emi, sony- ericson, whatever) has no effect on earnings whatsoever. It's a simple excange of assets and doesn't touch the earning report, so it doesn't affect loss or profit. I see a lot of people on here makeing that mistake so i thought i'd try to clear that up. |
Oh God,
When you buy something, you have to pay for it. Money does not come from nowhere. This is not a simple exchange of assets but investing.
Sony bought Gaikai for $ 300 million, but that does not mean that Gaikai is worth exactly $ 300 million. This does not mean that Sony is swapped with Gaikai 300 million dollars. This means that Sony has paid the owner Gaikai - but instead gained ownership of Gaikai. Ownership of Gaikai is worth, for Sony, 300 million dollars. This is the basis of investment - in order to win, you have to put money first.
