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Forums - Sony - Sony to sell $1.9bn of conv bonds, stock down 10% in early trading.

Soundwave on 14 November 2012

Well maybe Nintendo + Sony can come to a deal.

Nintendo buys a small amount of Sony bonds/stock (not 50% or anything like that). 

In the future Nintendo will need a hardware partner if they want to continue making gaming handhelds -- Sony can be that hardware partner as they have a cell phone and tablet division. Eventually I think Nintendo is going to have to accept cell phones and tablets, this is a way for them to do so on their own terms, since they would have a stake in Sony and can be in the driver's seat.

Sony agrees to basically exit the handheld gaming market and jointly work with Nintendo on a future handheld platform which will succeed the 3DS in a few years.

Console side is left untouched for now.

That might be interesting.



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happydolphin on 14 November 2012
Proclus said:

Err, yeah, then you get Sony and untold billions in debt, I think MS will pass, and rightly so.

I think they are intending to pay that debt back with these bonds.



Soundwave on 14 November 2012
happydolphin said:
Proclus said:

Err, yeah, then you get Sony and untold billions in debt, I think MS will pass, and rightly so.

I think they are intending to pay that debt back with these bonds.


Their overall debt is far bigger than just $1.1 billion. This will put a dent in it though.



Soleron on 14 November 2012
Soundwave said:
happydolphin said:
Proclus said:

Err, yeah, then you get Sony and untold billions in debt, I think MS will pass, and rightly so.

I think they are intending to pay that debt back with these bonds.


Their overall debt is far bigger than just $1.1 billion. This will put a dent in it though.

No, it will increase the total interest and therefore amount payable, it just spreads it over a longer time for them.



BuckStud on 14 November 2012
Soundwave said:

Well maybe Nintendo + Sony can come to a deal.

Nintendo buys a small amount of Sony bonds/stock (not 50% or anything like that). 

In the future Nintendo will need a hardware partner if they want to continue making gaming handhelds -- Sony can be that hardware partner as they have a cell phone and tablet division. Eventually I think Nintendo is going to have to accept cell phones and tablets, this is a way for them to do so on their own terms, since they would have a stake in Sony and can be in the driver's seat.

Sony agrees to basically exit the handheld gaming market and jointly work with Nintendo on a future handheld platform which will succeed the 3DS in a few years.

Console side is left untouched for now.

That might be interesting.


The question is, why would Nintendo need Sonys help to make a handheld.  Nintendo has ruled the handheld market since the original Game Boy?  While the PSP did pretty well, it just doesn't make any sense.



Stop hating and start playing.

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Slimebeast on 14 November 2012
kowenicki said:
Soundwave said:
kowenicki said:
oni-link said:

Wouldn't it be cool if Nintendo was to buy Sony!!! Nintendo currently has ~$10 billion dollars in cash assets that are currently liquid http://www.nintendo.co.jp/ir/pdf/2011/annual1103e.pdf. Sony's market cap is currently at $9.6B, if Nintendo was to invest only 45% of it's total liquid assets it would give them at least 50% controlling stake on the company.  I know it's a long shot, but it would be nice to see these two Japanese videogame companies to merge into one.   

Sony isn't a video game company and a Nintendo Sony marriage is a non starter. 


Yeah, I've never heard of a Sony video game console /sarcasm.

Nintendo is a video game company.

Sony and Microsoft are large companies that also make video games.

there is a difference.

Kow, answer my question please, a few posts above!



Cobretti2 on 14 November 2012

Can always rely on kowenicki to provide a good summary report on Sony. Thanks, makes my life easier.

 

CChaos said:
Well, I think one thing we can all agree on, wholeheartedly, is that the Sony of the future will be a different beast than the Sony of today. It's strange to think about, considering most of us have grown up around Sony products, but this is going to come down to a few very important points that go beyond things like the game division.

1) Can they profit enough in the short term to not only break even, but to break even enough to pay off their mass of debts?
2) What will stay and what will go? Extreme measures require extreme choices. This does mean that they might be forced to kill or sell entire divisions. The death of the Sony TV could still be possible.
3) How are they going to streamline for the future?

At least most people aren't using the infuriating term that 'Sony is too big to fail' any more. Kaz appears awake and I'd bet you good money now that the engineers and executives have put down this 'us vs. them' attitude for the sake of mutual survival. It's not until people start realizing the potential threats that they start working their asses off to prevent it. I think it's safe to say the realizations have kicked now. Now to see what they do about it.

Great summary, and this is what I been saying to pure Sony fans. Sure Sony had plans for the PS4 to be 10x as powerful as PS3, but with what has happeend to them in recent years. can they really make an affordable console that is sold at a profit, as selling at a loss will not be a good option.

On a personal level, I really hope they turn it around as gaming without Sony will be like gaming without SEGA, a huge hole.



 

 

Paul on 14 November 2012

Should I invest in these or greek bonds?



oni-link on 14 November 2012
Soundwave said:
kowenicki said:
oni-link said:

Wouldn't it be cool if Nintendo was to buy Sony!!! Nintendo currently has ~$10 billion dollars in cash assets that are currently liquid http://www.nintendo.co.jp/ir/pdf/2011/annual1103e.pdf. Sony's market cap is currently at $9.6B, if Nintendo was to invest only 45% of it's total liquid assets it would give them at least 50% controlling stake on the company.  I know it's a long shot, but it would be nice to see these two Japanese videogame companies to merge into one.   

Sony isn't a video game company and a Nintendo Sony marriage is a non starter. 


Yeah, I've never heard of a Sony video game console /sarcasm.


thank you for your support



oni-link on 14 November 2012
kowenicki said:
Soundwave said:
kowenicki said:
oni-link said:

Wouldn't it be cool if Nintendo was to buy Sony!!! Nintendo currently has ~$10 billion dollars in cash assets that are currently liquid http://www.nintendo.co.jp/ir/pdf/2011/annual1103e.pdf. Sony's market cap is currently at $9.6B, if Nintendo was to invest only 45% of it's total liquid assets it would give them at least 50% controlling stake on the company.  I know it's a long shot, but it would be nice to see these two Japanese videogame companies to merge into one.   

Sony isn't a video game company and a Nintendo Sony marriage is a non starter. 


Yeah, I've never heard of a Sony video game console /sarcasm.

Nintendo is a video game company.

Sony and Microsoft are large companies that also make video games.

there is a difference.


I think we all know that. However, since Sony's VG biz makes up a lot of Sony's current revenue I just grouped what both had similarly.