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Not sure how many people remember this one - its fairly old, and was also pretty low key (for obvious reasons...).

In short - Sony has NO money:

http://www.bloomberg.com/apps/news?pid=20601080&refer=asia&sid=ac.REUfeFG9Q

" July 3 (Bloomberg) -- Sony Corp., the world's second- largest consumer electronics maker, said it took out an 80 billion yen ($698 million) syndicated loan last week, its first long-term bank borrowing in 10 years, to diversify funding sources."

...

"The company also has more than 513 billion yen outstanding in corporate bonds as of March 31, including 250 billion yen in convertible bonds sold in 2003. In February Sony raised 100 billion yen by selling bonds maturing in four to ten years.

The three-year funding disclosed last week was Sony's first bank loan since the year ended March 1996, Kurata said."

...

So in other words - Sony didn't have enough cash available, and has been raising cash by selling off corporate bonds (that will need to bought back later) and borrowing low interest-rate loans.

You won't find Nintendo or MS "borrowing" money from the bank!

 

 



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