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sethnintendo on 24 August 2013
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Kasz216 said:
ethomaz said:

Kasz216 said:

Nah it's totally different.  Loeb wants to spin of the Entertainment division so it is it's own seperate company partially owned by Sony, so that it can get rid of the albatross that is everything not Entertainment, and so the rest of the company doesn't lean on entertainment and is forced to imrpove their own buisness with an influx of Cash.

 

Value Act wants Microsoft to sell the Xbox Division beause it has a lot of products that are... meh and haven't paid off yet.   Though that's not really what they want.  Unlike Loeb who owns 7%... Value Act only owns 1%.

In reality they are just trying to bully their way into a seat at the big table by making waves.  Essentially by threating to shit on the Xbox division and cause a huge investor stir up right before the One releases.

For me both guys are speaking a lot of bullshits .


Eh, it depends on how much faith you have in Sony outside of Entertainment.  If you believe in Sony as a Hardware producer and their other non entertainment buisnesses.   The Spinoff is an AMAZING idea.   Companies do spinoffs so often because when the company knows what it's doing, both the company and the spinoff end up making more money then before, are worth more then before, and the parent company always seems better off.

If you think there is no chance they can innovate themselves out of their troubles and that Samsung has their number, then the Spinoff is hugely stupid since it's money going towards nothing.  A good example where it didn't work?  Netflix.  They wanted Streaming and DVD's to be different companies.   Nobody thought the DVD company could stand on it's own however so both companies took a hit.  So they had to stick together.

What's hilarious is generally everybody seems to take it the exact opposite way.  Those with faith in sony are agaisnt the spinoff even though it's by far the best move if you expect they can make a turnaround.  While those who don't have faith in sony think it's a great idea.


Going a little off topic but I like how you pointed out Netflix.  Company took huge losses on their stock for awhile because of the whole debacle.  Netflix is now stronger than ever since they stayed as one company (plus the name Flixster or whatever the hell it was a terrible name).  I believe I cancelled my subscription right when the split was announced in an email by the CEO (along with a decent amount of other subscribers).  They then had to send out a letter of an apology from the CEO about the whole thing pretty much begging people to come back but expect to pay double for 1 dvd rental with streaming.  So most people went streaming only but they probably have a decent amount of people that still do the dvd rental.

On topic: Funny that the USA government at one point tried to bust up Microsoft because they were so dominate back in the 90s.  That would have been interesting but Microsoft is definitely better off staying as one.  Sure some of their products are bombs or don't sell that much but they still are kings of the OS for now.  If I was an investor of Microsoft I would rather have them just focus less on producing Surface tablets and more focus on the game division.  They probably haven't made a net profit since entering the video game business but they damn sure better stick around since they are finally seeing some green and have a decent size user base.  There is no reason to sell off the Xbox division now.