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Forums - Sony - Sony hiring Morgan Stanley and Citigroup for Loeb Plan.

Mmmfishtacos said:
Then that's not so bad. But won't it devalued sonys normal stock?

Actually, oddy enough such spinoffs generally show both stocks rise.  Hugely complicated companies are usually valued at a "complexity discount".

Hence why Sony stock ROSE with the rumor they were considering this option.

They'll get a short term cash boom that will raise stock + A short term boom for becoming simpler.... but then it'd be on Sony Electronics to turn it around with the new cash or long term they'd take a stock hit.



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Edit: not sure what i said, have to check lol

€dit 2: ok seems like it's only about music and pictures, thought playstation is a part of what should be the spin-off...



Then that's not so bad. But won't it devalued sonys normal stock?



VGKing said:
So where does Playstation fall? Electronics or Entertainment?
Please say Entertainment.


They used to be among the top dogs of electronics. But many have cought up to them during the last 2 decades and they just can't seem to be able to sell at competitive prices.  Their cameras have a really good reputation, among plenty other items they produce. Generally speaking, their stuff is of really good quality, so it would be a shame if they'd fall for good.

But right now, it's the entertainment part of the company that is the most lucrative, the electronics part has been struggling real bad for quite a long time now. Although their mobile branch seems to be heading in the right direction.



Soooo, if the entertainment would be sold, then Sony would be just left with mainly electronics losing money without a proper counterbalance.

So how is this a good idea?



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

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sales2099 said:
Soooo, if the entertainment would be sold, then Sony would be just left with mainly electronics losing money without a proper counterbalance.

So how is this a good idea?


It's a good idea because now a good business won't be saddled paying the debts of a bad business.

If there were any synergy between movies/music and electronics, I might say that this was a bad idea, but if there's an advantage to be leveraged there, Sony sure hasn't been able to leverage it, despite decades of experience in both markets.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

never trust bankers, regardless of what they say. Sony should just stay as it is



Xbox Series, PS5 and Switch (+ Many Retro Consoles)

'When the people are being beaten with a stick, they are not much happier if it is called the people's stick'- Mikhail Bakunin

Prediction: Switch 2 will outsell the PS5 by 2030

Kasz216 said:
Mmmfishtacos said:
Then that's not so bad. But won't it devalued sonys normal stock?

Actually, oddy enough such spinoffs generally show both stocks rise.  Hugely complicated companies are usually valued at a "complexity discount".

Hence why Sony stock ROSE with the rumor they were considering this option.

They'll get a short term cash boom that will raise stock + A short term boom for becoming simpler.... but then it'd be on Sony Electronics to turn it around with the new cash or long term they'd take a stock hit.

Phillips 66 and ConocoPhillips is the best example of this.



What kind of future would the electronics company have then? TVs made losses for 9 years in a row. Cameras are not huge money makers either and Playstation burned through a couple of billions in the past gen.

It is not like the problems in these markets would disappear somehow. There is still Samsung, LG, Microsoft and others to compete with.



Imagine not having GamePass on your console...

It's possibly good for Sony but not necessarily great for Playstation. Though it could force playstation into trying to make money and not lose money.