Reasons why Sony won't go bankrupt.

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Devil_Survivor said:
Its simply really, until they turn a legit profit and not one that involves selling off buildings and divisions then people will start to think differently. However, for them maybe going bankrupt are still greater in number than the ones against going bankrupt.

btw, I thought they had more then two money losing divisions? Don't they cell phones use them money too?

http://gamrconnect.vgchartz.com/thread.php?id=177187&page=1

TV actually made a positive operating income for the last quarter, but not much.

Mobile phones were negative

Devices (PC I assume) was also negative.

3 divisions with negative income, 6 divisions with positive income. If you take out the TV and PC divisions from that result you get a much better operating income. Sony probably sees a pathway for mobile to get into profit, but it probably doesn't have a vision for how to bring PC around.  And they are not ditching TV, they are just putting it at arm's length, which means they do see a way for it to return to profitability. But it has to stand on its own, which means there's a pretty high risk it will fall over.

Also debt in itself doesn't matter, as long as your creditors believe you can service you debt then debt can hang around for years, provided your cashflow positive. And shareholders don't want you paying off debt too quickly because that reduces profits in the short to medium term without much tangeable benefit. Debt only really becomes a problem when it exceeds assets, which then puts you in a negative equity situation, (like in the GFC when people's hose values plummeted so that their mortgage was 120% of the value of the house) that's when creditors start getting really nervous.

Sony's in a better place right now than it has been since 2007.