mutantsushi on 20 May 2014
| DirtyP2002 said: Why would any investor want to put his money on such a sinking ship like non-entertainmen-Sony? Heck Sony WITH entertainment is pretty much fucked up, how do they expect to improve without profitable divisions? Therefore it is more like "saving" the profitable divisions before they are sinking along with Sony as a whole. |
Again, the article explains this: Sony's current valuation is less than the sum of it's parts.
Splitting it up is instant paper profit for speculator investors like the guy quoted in the article,
who can sell his stake immediately for a profit, irrespective of what happens in any of the business units.
In the article, he refuses to make a counter-argument against the benefits of keeping the congolomerate together,
his entire premise hinges on benefits to stockholders in valuation terms, not on profitability or business operations.
Conversely, investors looking to earn actual profits out of Sony do better by Sony's below-spec valuation.
