Galaki said:
Sony bleeding money in the TV department and having to sell it off is not bad news? |
Its not bad new becuase Sony is taking the necessary steps to divest its worst performing business line while saving a ton of money in the process
Galaki said:
Sony bleeding money in the TV department and having to sell it off is not bad news? |
Its not bad new becuase Sony is taking the necessary steps to divest its worst performing business line while saving a ton of money in the process
Non business people need to move to the side, since you are embarrassing yourself.
http://www.marketwatch.com/story/samsung-to-buy-sony-stake-in-lcd-joint-venture-2011-12-26
#1. Sony is to save 50 Billion Yen (640 Million Dollars) a year divesting this joint venture
#2. Sony is going to take a charge of 845 million dollars BUT Samsung is buying out the portion it does not own for 945 million resulting in no net change for Sony
Big win for Samsung if they can turnaround this venture as the sole owner. Kinda saw this coming with the PS Vita running AMOLED by Samsung, basically Sony is going to contract out the display making to Samsung but still sell TVs under its Bravia line
Probably the best news Sony has had in years.
kowenicki said:
To be precise... there is still a net balance sheet $845m write off to reflect loss of value. Its a cross roads for Sony... make or break time for TV's. I have to womder why anyone would buy a "Sony TV"... there isnt any such thing from now on. Its a Samsung TV or a Sharp TV with a sony box around it.
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Being in a very commoditzied business such as that of making LCD, I think after 7 years, with the depreciated equipment in the plant, a writeoff was to be expected. Most joint ventures are created in good faith but never materialize to anything profitable in the long run; Sony Ericcison, GM Toyota Nummi etc.
You see alot of private label TV maker have success such as visio, Sony still has weight has my roommate bought a Sony Bravia 3D TV for christmas.
kowenicki said:
To be precise... there is still a net balance sheet $845m write off to reflect loss of value. Its a cross roads for Sony... make or break time for TV's. I have to womder why anyone would buy a "Sony TV"... there isnt any such thing from now on. Its a Samsung TV or a Sharp TV with a sony box around it.
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So that loss will be reflected this FY? Also Kowen, is it still possible for Sony to do horribly in Television (draining the company), even with this sale? I am not exactly sure how much of hold this venture had on that department.
Acevil said:
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The charge will be reflected this quarter, so when they announce earnings its not going to be good. But the two reports ive read indicate that the savings start immediatly, 1 January.
So, business is so bad that they have to slim down is good news?
We'll just have to agree to disagree on that.
Galaki said: So, business is so bad that they have to slim down is good news? We'll just have to agree to disagree on that. |
It is good news in the sense, the company can become profitable. Remember this is from a companies stand point, if something isn't proving results, sometimes you have to accept it, and get rid of it.
Acevil said:
It is good news in the sense, the company can become profitable. Remember this is from a companies stand point, if something isn't proving results, sometimes you have to accept it, and get rid of it. |
Yes. It's better than going deeper in the red. No doubt. But not-as-bad-news isn't good-news. It's still bad.