oh... em... geeeeeeeee

Here's a much better, detailed new article on the matter (and also the link in the op didn't work for me :S )

http://seattletimes.com/html/businesstechnology/2019283149_apasjapansonyolympus.html

here's the biggest point to take away from this situation

"The two companies said they will set up a new medical equipment company together later this year, 51 percent owned by Sony and the rest by Olympus."

overall sony got a very good deal imho. I did a small paper on the olympus situation for a class and they were in a lot of trouble. Hiding huge losses, misleading investors and government etc etc.

afaik medical equipment industry is a very healthy industry. This could prove to be a wise and profitable venture for both companies in the long run. Time will tell

oh and also this not JUST about the medical equipment business

according WSJ

"and to study collaboration in compact digital cameras."

well it depends on how you look at it. With this sony just became their biggest shareholder and should gain some significant push within the company going forward.

and not sure what you mean by it didn't cost them nothing? The venture hasn't started yet. Of course it's going to cost Olympus resources, including money. This just means sony will get more profit and possibly more desicion making power within the venture.

Also I don't think other than Kaz saying he is interested in getting into medical field we have anything else to go by. Spending that much money to be the leading shareholder is surely not just for one venture/project. They must have long term goals in other areas as well

You might like this, here are some spendings Sony did in the past 12 months:

• 380 Million USD for Gaikai
• 644 million for 11% of Olympus
• 2.2 billion for EMI (Well it was a group of investors, led by Sony. The biggest investor was a company from Abu-Dhabi though)
• 1.35 billion for the missing 50% of Sony Ericsson from Ericsson

Isn't that strange for a company that reported a 4.3 billion USD loss in the past year and hasn't been profitable for almost 5 years now? Especially with their downgraded rating 3 days ago.

The medical business is profitable, but it is also highly competitive. Philips, Siemens, GE or Agfa Healthcare won't just sit there and see how Sony does.

Sony knows where the real profit comes from...not from the general public.

Maybe as in other ventures? Sure I agree..but I think it's a logical conclusion. Time will tell

But if it's about the cost for olympus..no doubt about it..they will share a good chunk of the cost in the join venture

@bolded: not at all. To put it in the simplest of terms, you got to spend money to make money. And all the ones you listed are good investment choices. And I'm sure there's more too. I remember them buying a new lense making factory a while back as well. THe company as a whole is going through some major restructuring and refocusing now.

here's the one I was talking about

http://www.google.com/hostednews/afp/article/ALeqM5hPJhW-b-9ryflRHoiz8BIxNhdXng?docId=CNG.f49ea2abd665cb7a7cb0dbbad1fc7346.651

This is how you get out of a slump..by being active and having some good long term goals/investments

Are you comparing the laughable cameras in smatphones with professional ones?

"Isn't that strange for a company that reported a 4.3 billion USD loss in the past year and hasn't been profitable for almost 5 years now? Especially with their downgraded rating 3 days ago."

This question should go to those kids that think they are business experts besause they work in a video game retail shop or read too much on the internet

Yes