Top
290°

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

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.

Read Full Story >>
dualshockers.com
The story is too old to be commented.
Abash1565d ago

They should have just said "Have you seen the PS4 hype? We'd be stupid to sell that when we're getting back on top"

Bruce_Wayne1565d ago (Edited 1565d ago )

It benefits them in the long-run much more by hanging onto 100% of their division. Wise people over at Sony.

1565d ago
izumo_lee1565d ago

A united Sony is a better Sony. Show them who's boss Kaz!

Kevlar0091565d ago

"One shareholder raised his hand, questioning the logic is staying unified at such desperate times"

"Kaz proceeded to stare into the shareholder's eyes, and slowly shake his head as he watched him erupt into flames and turn to ash"

:P

izumo_lee1565d ago

Kaz is Al Capone in The Untouchables.

'One big team'

http://www.youtube.com/watc...

M-M1565d ago

Just imagining that xD.

Donnieboi1565d ago

Nobody tells Kaz what to do. He stood his ground. Good game, Kaz. Good game.

Drasill1565d ago

Bad decision. The money they would have gained could have partially been invested into their gaming division.

CGI-Quality1565d ago

Their Gaming Division, is doing, and will be, fine.

theWB271565d ago

But their gaming division is in with the hardware division...which has been doing absolutely awful. Playstation has greatly been pulling the weight around...which isn't always a guarantee that Playstation could accomplish that.

CGI-Quality1565d ago

@ theWB: Nah, it's not doing "awful" at all. Not sure where you get that from.

Death1565d ago

The gaming division is doing fine? Can you substantiate that with anything other than a gut feeling? Their financials over the past 5 years do not support what you are saying.

Misaka_x_Touma1565d ago

yeah they doing fine alright

- sold their tokyo building for 1.2b
- closed down several studios
- Reports loss every year from 2006-2011
- just posted a loss for 2013 Q1
- use too much money for Gaikai, PS4, Beyond Two Souls and The Last of Us

Not trying to bring them down but saying Sony doing fine is like saying Nintendo is doing fine with Wii U.

FanboyCrusher1565d ago

The gaming division is great, but it doesn't have the online infrastructure to work even close to the level of XBL in terms of speed, and overall functionality. With the money they could have got from investors they could have improved it greatly. Not to mention they could have sold 20% of the company for a loan, and once the money was used, re-made, and put back they would have had the full 100%, plus the money they needed to put into development.

theWB271564d ago

I got it from everywhere on the web and from investors and their market being at the lowest it's been since 1980. Here's a link

http://www.nytimes.com/2013...

It's annoying really how you people on N4G don't know crap about what's going on and spew crap like you do. Their hardware division is doing crap. No amount of disagrees on N4G will change that.

Saigon1564d ago

@theWB27

That article states:

"As proof of the untenable future facing Sony’s electronics, critics point to its televisions and smartphones. Competition is intense, and in cellphones Sony remains a bit player. Even where it is more successful, in digital cameras or game consoles, it is struggling to stay abreast of stronger companies."

Notice how it states that Sony is struggling in their TV and smartphone market but within digital cameras and game consoles it is successful though competition is strong.

Since I do follow the gaming world closely as well as electronics, I knew the big issue with Sony is their TV and smartphone division. They waist millions on trying to develop something the market can gain from and always loose out. For example look at how much money they threw into the researching OLED TVs and the investment did not pay off. Their Electronics R&D division needs refocus as they did with the PlayStation. Maybe they still have old Researchers/developers they are holding onto as they did with KK for some time. Though it is good that Sony Board of directors are adamant in finding a solution as they are reaching out to universities to see if that would help. Maybe wasted effort, but we will have to see in the future.

CGI-Quality1564d ago

@ theWB27: That's funny, even YOUR source doesn't confirm what you're trying to spout. I applaud your efforts, though.

+ Show (5) more repliesLast reply 1564d ago
DragonKnight1565d ago

Their game division is their most profitable division. Giving up a 20% stake in the company comes with another voice telling them what to do and that will cause nothing but problems. Short term financial gain doesn't always equate to long term financial success.

Death1565d ago

"An operating loss of ¥229.8 billion was recorded, compared with operating income of ¥10.8 billion in the previous fiscal year.

·The segment’s operating loss was due primarily to such factors as a decrease in gross profit, provoked by the segment sales decline noted above (excluding the impact of foreign exchange rates), and the deterioration of both the cost of sales ratio and equity in net income (loss) of affiliated companies.

·Product categories contributing to the decline in operating income—excluding restructuring charges, an impairment loss on Sony’s shares in S-LCDs and subsequent foreign currency adjustments and impairments of long-lived assets—were LCD televisions, a result of additional LCD panel-related expenses arising from low capacity utilization for S-LCDs and of a decline in sales, and the game business, also reflecting a decline in sales."
http://www.sony.net/SonyInf...

Kickin ass and takin names according to Sony. This information is available to anyone with an internet connection.

Here's 2008-2010 if interested. Game was part of Networked products and services then. http://www.thesixthaxis.com... Spoiler alert, lot's of losses. Financial Services is where the money is at by the way, not gaming.

DragonKnight1565d ago

@Death: So basically you provided nothing but an overall operating loss, which for years has chiefly been due to the tv and laptop departments, and really only showcased your complete arrogance and self-congratulatory personality when making an attempt to knock my comment and make Sony look bad.

Congratulations, you failed in your goal, but hey all that matters is that you tried right?

Death1565d ago (Edited 1565d ago )

You seriously need to learn how to read. Please show me on any of Sony's financial over the last 5 years where they didn't attribute their losses to "Game". You can blame tv sales all you want, but prior to their restructuring Game was part of Networked Services. The losses there were much worse.

Do you even know what the word profit means? Profit would be when I give you $5 and you give me back $6. A loss would be where I give you $5 and then give you 80 million more yen and send an apology to all my remaining investors.

As for me sending you an "overall operating loss", that is far from overall. Those are simply the divisions housing "Game". Click the 4th pic in the second link I provided. It's operating income andlosses for dummies over a three year period by division. Financial was the winner in 2010.

Now show me where I am wrong. You can wave your pom-poms all day for all I care, but if you are going to make statements that are so far from reality, please back it up with something other than what you "know".

4Sh0w1565d ago (Edited 1565d ago )

This is from Death's above link

"a result of additional LCD panel-related expenses arising from low capacity utilization for S-LCDs and of a decline in sales, and the game business, also reflecting a decline in sales." 

Wait so you guys say sonys game division is doing fine Death shows from sonys own info they are not and you say he failed???

Dragon sony is a great company but economy changes and in some areas they were slow to adapt, yes mostly to do with tv's(too expensive vs other comparable brands) but Im sure things like psp go, vita, dumping the cell and decline in software sales have some bearing on why sony as a whole company has been struggling for years now, hell micro has bad investments too but their deep pockets due to windows saturation keeps them fat and happy. In the end it really doesn't matter which division because its one company, so they either split, or sell off part of their company, or turn things around because if they dont it will eventually do alot of damage to the ps brand if they have to cut back on funding studios= less games and I certainly want them around as a strong competitor to keep micro honest.

DragonKnight1565d ago (Edited 1565d ago )

@Death: See, complete arrogance.

"You seriously need to learn how to read. Please show me on any of Sony's financial over the last 5 years where they didn't attribute their losses to "Game". You can blame tv sales all you want, but prior to their restructuring Game was part of Networked Services. The losses there were much worse."

Networked Services. What part of that title sounds like Gaming Division to you? Networked Services including mobile phones and personal computers (i.e. laptops). We know Sony was losing big time on laptops and their mobile phone division was never too great. So what were you saying again?

"Do you even know what the word profit means?"

Do you know what the words condescending douchebag mean? This part of your response merely further cements an attitude of arrogance.

What's interesting about your comment is that you reply with data that is 3 to 5 years old when, and this is the part you should be paying attention to, absolutely no one said "Sony's gaming division had been doing fine a few years ago."

See this is the thing. You have a problem. You actively looked to find anything you can to make the claim that Sony's gaming division is doing terribly, ignored the fact that Networked Services included mobile phones and personal computers, and basically decided you were going to go on an arrogant, condescension crusade against anyone who dared suggest that the Playstation Division is doing great. Remind me why anyone should be talking to someone like you about anything?

**EDIT** @4Sh0w: Do you consider "and the game business" to be adequate proof of anything? It is such a blanket statement to be making. It could have been talking about the development of the Vita (considering Death provided old information), the acquisition of studios or IPs, we don't know what it's talking about. But funding development and support isn't the same as "Sony's game division is doing terribly."

Anyway, at least your response wasn't filled with arrogant tripe. It's clear to anyone that Sony's gaming division is the one part of their business that has the most interest in it and they have a vision and plans for it. Selling any part of that off to anyone would be very bad, especially for us, because that entity would definitely be of the mind that that division should casualize and go mainstream with everything. That would cause loss of brand faith among gamers for sure.

Hicken1565d ago

"The segment’s operating loss was due primarily to such factors as a decrease in gross profit..."

Do you know what that means, Death & co?

It means that, while they DID profit, it was less than before.

PlayStation isn't making enough to cover the losses elsewhere.

Nowhere does it say PlayStation is operating at a loss, that they're LOSING money.

But that's not as important to you as it is that Sony could be seen as not doing well.

Keep on spinnin, baby.

No_Limit1564d ago

You be the judge to see if Dragonknight or Death is the one telling the truth.

Q1 (April - Jun 2013) result of FY 2014
"Q1 Games sales at $1.2bn, but operating losses up 322% to $149m"
http://www.gamesindustry.bi...

FY2013 ending March 31, 2012
"Sony's first profit in five years, no thanks to PlayStation"
http://www.gamasutra.com/vi...

FY2012 ending March 31, 2012
"Sony PlayStation division suffers full-year $2.8bn loss"
http://www.gamesindustry.bi...

FY2011 ending March 31, 2011
Sony posts $3.17 billion loss, PlayStation division sees $434 million profit
" http://www.gamespot.com/new...

FY2010 ending March 31, 2010
"Sony game division loses $890 million, PS3 sales hit 35.7 million"
http://www.gamespot.com/new...

+ Show (4) more repliesLast reply 1564d ago
Consaba1565d ago

I think they know more about how to lead an company than you

FanboyCrusher1565d ago

That's why their financials have sucked the past 7 years, and the last profit they dragged in was a meager 0.02% of it's expenditures. They really don't know how to run that company how they used to, that or they got so used to running a show that it's hard for them to deal with the competition from all of their divisions (cameras, phones, TV, Consoles, Blu-Ray players)

Sony makes great products, no doubt about it. They just don't make near enough what they need.

kenshiro1001565d ago

@ Death

Their gaming division is profitable. Maybe you should show evidence of how the gaming division is in 'crisis' first before you knock someone off for their comment.

Death1565d ago (Edited 1565d ago )

Done.

Check my above reply. Now show me where they are doing good. *edited- other than on N4G to be specific.

kenshiro1001564d ago (Edited 1564d ago )

You still didn't show me links. You depended on your buddy No_Limits to do that.

And No-Limit, one of your links showed that the Playstation division was profitable in March 2011. I know you're trying your hardest to make Sony look bad but it's not working.

I've been watching you carefully Death. You only show up once a full moon just to 'demonstrate' how bad Sony's doing as a company.

Welcome to ignore list. Enjoy your stay.

3-4-51565d ago

No, the guy who wants to do this wants them to split it so he can influence and control more.

It's greed and today, Sony & gamers won.

kenshiro1001564d ago

@ theWB27

You should read your own link. It didn't have much to do with gaming, only that Sony needs to exit some electronic markets.

No one ever stated that things were fine and dandy at Sony. Their gaming division *IS* profitable though, otherwise there was no way in hell they could invest in a PS4.

+ Show (3) more repliesLast reply 1564d ago
PositiveEmotions1565d ago

Sony will gain tons of money by selling a bunch of ps4s

Rip-Ridah1565d ago

And also the Sony Xperia Z I just bought my fiancé and I. Tight ass phone I might add.

fourOeightshark1565d ago

And the Xperia Tablet Z is doing good too.

Consaba1565d ago (Edited 1565d ago )

They will even get money through selling Xbox One's, because of the Blu-Ray license.

LOL why the dislikes? its a fact, Blu-Ray is owned by Sony for those who are a bit stupid.

PositiveEmotions1565d ago

That i am not sure how that will worn out.

DarkBlood1565d ago

@Consaba they own a percentage of blu-ray not the whole thing so your fact is partially right

Misaka_x_Touma1565d ago

Sony doesn't own Blu-Ray. They are only Blu-Ray main partner.

They get majority of the shares.

Death1565d ago

There are 18 partners in the Blu-ray group on the board. Sony is one of the partners. They do not own the majority. They didn't even invent the technology.

hamzvira1564d ago (Edited 1564d ago )

blu-ray is not owned by only Sony, there's 8 other companies in the blu-ray founder group.
but i think Sony get more than the other companies since it's the company who started the blue laser project with Philips, and worked very hard to make blu-ray disc a success .
https://en.wikipedia.org/wi...

sony take royalties from HDMI too, i don't know if people know this or not, it's one of it's founders
http://en.wikipedia.org/wik...

and u can't deny that sony also pay microsoft for using windows in there laptops .

this is business so companies pay royalties for each other all time .

+ Show (2) more repliesLast reply 1564d ago