VideoGameAccountant said:
My second point above is basically that the other divisions basically owe SIE. If you were to apply this to any of Sony's other acquisitions, many of them wouldn't have happened. So yes, they make up ~27% of the company's total revenue, but on any given year they tend to get a substantially smaller portion of that. And at some point that could go the other way.
I think your missing the point of this analysis. If all cash was split equally, than Sony's gaming division would have claim to 27% of their cash. Its not an exact number (and it actually includes sales from the Financial Service sector), but the point is that even with the 626 in cash, that amount needs to be split between the other divisions because that is all of Sony's cash. Your point on the divisions owing Sony is mute here because this is trying to split cash evenly. Sony Gaming can't hog all the resources the other departments needs because they made acquisitions in the past. Point is, Sony doesn't have the liquidity to make a deal work. *On 626 billion yen - "In just cash, Sony has 1.473 trillion yen. However, this is split between all of Sony's departments. If you take out Sony Financial Services, they only have 874 billion yen." 874 minus 248 equals 626. The 1.4 trillion yen includes the Financial Service's Cash. The 874 billion number comes right out of Sony's Earnings Release. On the last point, I thought you meant Square with SIE, so my bad on that. If you want a response to my original point, then just see the analysis I posted previously. Sony pictures CEO may be right that they will have more acquisitions, but Square is out of their league with their current positions and liquidity. Sony is not looking to hot right now, so it would be hard to finance an acquisition of this size. And if an acquisition like that were to happen, Nintendo would likely sweep in and be in a better position to make a deal, both due to their current success and greater availability of liquid resources. |
