kowenicki said:
NYCrysis said:
Kasz216 said:
I'm not so sure.
While the likely dominance of the PS4 hasn't been fully priced in... a LOT of Sony's stock gain recently has just been on the assumption that they will benefit from a successful Abenomics plan.
Meanwhile, abenomics seems to be having some issues in that the companies that have made tons of money off of it... are just hanging on to their cash reserves.
Sony meanwhile... is still in debt... and it's structural reforms seem to be slow going. The most noteable being the cancelation of the OLED TV product line and the selling of Gracenote... for like 100 Million or so less then they paid for it. (Which was like $200 million) so they haven't exactly cut that much fat.
Sony isn't quite a Zombie firm, it does have a lot of debt... and one of the things Abenomics plans to do is to let zombie firms fail by allowing lending rates to increase.
If this hits before Sony hits year round profitability that could greatly increase costs.
Sony is very much a gamble right now.
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But don't forget that Sony as a whole is valued much less than its parts 
A Sony with only Movies, music, imaging, playstation, financials, and now mobile (all profitable divisions at $1.5-2 billion a year) would have a market value of a good 50 billion. And remember sony has assets valued at over a $150 Billion.
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and debts of $127bn with stockholder equity of $23bn.... leaving net assets of just $10bn. (half of what it was in 2011)
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Pretty much. Not to mention, that if sony liquidated their unprofitable divisions wholesale... that debt would rise, and revenue would shrink.
People in the US are used to at-will employment but that's not the case in most the world. Japan has a very strong "Employment for "life" culture where it's VERY hard to fire people.
Hence the rumors of rooms and departments in sony and other ailing companies meant to annoy people into resigning.
So really, the whole is worth less then the sum of it's parts.
Sony in general would just be a bad buy for any company. It's just too big, complicated and has too many unsolved questions.
That doesn't make it a bad company persay. Just not really something you want to aquire.
When aquring a company you basically want a company that just does a couple of things.
