330°

Sony Refuses Proposal to Sell 15-20% of Entertainment Business, Will Remain Wholly Owned

DualShockers: Shareholder Third Point LLC asked Sony with a letter on May 14th to sell 15-20% of the corporation’s entertainment business in order to redirect funds to improving the situation of the elelectronics business.

Today Sony responded with a letter, expressing an unanimous refusal from the Board of Directors, and outlining that the Board and management team strongly believe that continuing to own 100% of the Company’s entertainment businesses is fundamental to Sony’s success.

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dualshockers.com
fatstarr4089d ago

sony is going down as 1, which is respectable.

I wanna see how they get out of this one.

mushroomwig4088d ago

They're not "going down" at all, sorry to burst that bubble of yours.

GameSpawn4088d ago

This is because the PlayStaion and Entertainment divisions (Sony BMG and Sony Pictures) are the ONLY Sony divisions actually making money. Sony Hardware divisions (Ericsson, Vaio, Bravia) have been tanking the past few years because they have not been keeping up with their competition (Apple, HP, and Samsung respectively).

The PlayStation division and Entertainment division have been picking up the slack. For Sony to sell off part of the very thing making them money would be a poor decision. They can't really sell off any of their hardware properties either as they exist only to maintain positions in those respective markets. Sony Hardware just needs to get off their high horse and start pricing competitively with their aforementioned competitors. It better to move product at a lesser profit than not move product at all at a high profit margin.

Saigon4082d ago

I agree with your comment but its not just the pricing scheme. The features applied are also lackluster when compared to their counterparts. Most people are saying that they get better value, in particular to their TVs, when in comparison to Samsung. I am happy that Sony as a company recognize this and they are trying to resolve this problem. The other issue is that they invest so much into technology that won't be used for years to come or if not ever or their pricing scheme is too high to bring the revolutionary tech to the market, ie OLED.

Overall I think it is a bad move to sell of the sections that are doing bad, especially since they are close to turning around the problem. Sony was good with tube based TVs but since we as a world have gone flat screen Sony is not doing too well. Every company experience up and downs in each department and it is not as easy to just sell to look profitable. Sometimes you need to invest to fix the issue. And this is the situation we have here.

RedHawkX4088d ago (Edited 4088d ago )

sony is actually gaining momemntum. ps3 is golden, ps4 will be golden, sony has stake in blueray, sony cell phone is selling good. Sony pictures with amaing spiderman is making tons of money. sony tv and laptops is the only thing they really have to work on a little.

manaxknight14088d ago

this what happens when wall street gets involved...

SilentNegotiator4088d ago

I was hoping that they would split off their TV division, and few others, entirely.

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