Sony Stock Up Nine Percent After Xbox One Reveal

[Michael-5]

Kasz216 said:

Michael-5 said:

MoHasanie said:

Wh1pL4shL1ve_007 said:

I dont really get why Sony stock jumped either (Blu-ray???)

The shares are up because there are rumors that they are going to spin off or sell a stake in their very profitable entertainment division, and then use that cash gained to help their struggling electronics division. Nothing to do with Xbox One. 

Yea, but did X-Box One have no influence at all?

Why is Sony selling their more profitable division? I'm very confused at that. They keep selling, and selling, and selling, and soon there will be nothing left.

1) Yes Xbox One had no influence at all.

2) Spin-off not fully sell.  It's be like Sony Financial Group.  Which sony still owns 60% of.

 

Basically they'd sell 20-40% of the company.  Still maintain control over it... and get a huge influx of cash of people wanting to buy into sony entertainment because they'd expect sony entertainments stock to rise. 

 

You'd do this in hopes that the extra money would allow Sony to make the next big hit Electronics product.  Since the downsides are relativily minor.

Though you'd only want that if you had faith in Sony's electronics division.  Otherwise it's just wasted money.

Oh, I see, so Sony would still have complete control in decisions made by their entertainment buisness, but they have immediate cash now for PS4 dev.

However if their entertainment division is the most profitable, wouldn't 20-40% of future profits be given to new partial owners? This seems like a short term benefit, but a long term hinerance (unless PS4 really takes off because of it).

Still, Microsofts stock did fall by 0.7% or so right? How small is Microsoft's Gaming Division to their Windows Division? I think there was a small drop on MS, and a small boost to Sony because of X-Box One, but like Talal said, there is no way to know for sure.