Sony bought 11% of Olympus for ¥50bn, the alliance will see the two companies set up a joint venture in medical technologies which they expect will capture 20% market share of a ¥1tn market by 2020. Sony will own 51% of the JV.

The two companies are also expected to collaborate on consumer technology, with Sony providing image sensors for Olympus cameras (the OMD-EM5 already uses a Sony designed and made sensor) and Olympus providing lenses and mirror cells for Sony's cameras. Yes, this means NEX is getting Zuiko lenses, which in itself is probably worth the ¥50bn for Sony.

The background to this is that Olympus had a major scandal where it was found that their directors were paying the Yakuza to keep news of investment losses out of the papers and away from the regulators. Olympus had a to pay a huge fine and declare the accrued losses last year. This meant their operating capital was reduced to just ¥50bn, by allowing Sony to buy 11% of the company they will double their operating capital and shore up the business.

For Sony, this is the second JV they have announced this year with Japanese companies, after the expensive disaster that was S-LCD with a non Japanese company, Sony seems to have realised that sticking with Japanese companies is probably best. What comes of this is unknown at this point. The investment is primarily for medical technology, 4k and 3d endoscopes are mentioned specifically, and for consumers cameras on both sides are mentioned. It also says that Sony will eventually buy up the whole JV just as they have done with Sony Ericsson, but it won't be for a long time. Essentially this is Sony buying their way into a ¥1tn per year market for just ¥50bn while getting a few side benefits such as Zuiko lenses on E-Mount.

http://www.sony.net/SonyInfo/News/Press/201209/12-0928E/12-0928E.pdf

Why would they buy 11% of a mountain?

Bad move from Sony. The camera industry is rapidly dying because of smartphones.. Wasting ¥50bn yen on something like this is COMPLETELY insane

BS: the camera industry is far from dieing... the DSLR and Mirrorrless professional party is where Sony wants to be, and where they will almost certainly get

Professional cameras will allways be relevant, no matter what crappy new cam your phone receives

Great move Sony, great move.

People are missing the main point here. It's not cameras. They have paid ¥50bn yen to start a new joint company which will be producing medical equipment such as endoscopes and video microscopes. They are also going to share their respective camera technoligies with each other.

The market for proffesional cameras and dslr's will always be there, a camerphone is very limited when compared to a proper high quality camera. It's that market sony are after.

@last paragraph. Sounds kind of scummy. :3 Olympus gets shit for working with the Yakuza and Sony hands them their fix of cash for their reward. I think it's a tricky situation. But, once it's all said and done, it's all Sony's gain as they got a good deal it seems.

As for speculative, I'm not sure I know what you mean. They already bought the 11% according to the article, and are actually getting ready to set up the joint venture it seems.

Lastly, at those who think this is about cameras, I think the article is pretty clear that it's about Sony getting into the medical market, I think that's a very smart move. That market cries for better technological solutions at a better price.

spend like you gonna die tomorrow, invest like you going to live forever

I thought there was going to be a God of War theme park.

first of all it wasn't only for cameras and secondly, the camera market for people who want to make good photos won't die. maybe the market for those small digital cameras but that's obviously not what it is about, it's about the nex cameras and dslrs for professionals (hobby photographs often will buy sony's nex instead of dslr now, cheaper dslrs won't get new models anytime soon.)

as if people like me who like good photos would use a phone in holiday or so now lol^^ and people who only shoot photos with the smartphone did never have interest in the "real camera" market, only in the market for the cheap digital cameras.