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Sony to Raise 332 Billion Yen in Insurance Unit IPO

Sony Corp. will sell about 332 billion yen ($2.9 billion) of shares in its insurance unit in Japan's biggest initial public offering this year, raising funds for the consumer electronics and games divisions.

The world's second-largest consumer electronics maker will sell 725,000 shares, or 34.5 percent of Tokyo-based Sony Financial Holdings Inc., and the unit will offer 75,000 new shares, according to a statement today. The stock may be sold for about 415,000 yen, with pricing set on Oct. 1. Trading starts on the Tokyo Stock Exchange on Oct. 11.

The initial public offering of the unit, formed in 2004, will test demand for financial stocks roiled by losses in the U.S. subprime mortgage market. The proceeds may help Chief Executive Officer Howard Stringer increase production of Bravia televisions and channel funds to its unprofitable PlayStation unit.

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bloomberg.com
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Capt CHAOS3640d ago (Edited 3640d ago )

Just bring out a PSP with two analogue controllers and I'll put some pennies in their bank account..

Edit: Am thinking it's a good thing, more for their entertainment business - something I'd rather have them concentrate on.

cloud3603640d ago

All of which will be bought by microsoft....

which is one of the largest shareholders in the world. owing 10% of stock

paul_war3640d ago

I assumed the PSP & PS2 were very profitable..

Zor3640d ago

I dont think this has anything to do with the gaming division but with Sony Itself, Sony is much more then just Video Games

BIadestarX3640d ago

Do you know the simptoms of losing a monopoly game? when you start selling assets to keep yourself alive.
I guess Sony will use this $2.9 billion to continue to push blu-ray and probably subsidize the cost of possible PS3 price drops.
I think Sony should do apple style and beg Microsoft to give them some money... in exchange for some shares... :)

Vojkan3640d ago

They dont necesarilly need more money. They will use money of share holders to push even more Bravia HDTV(best selling HDTV BTW) and to probably support Christmas price cut. In the end they will turn more profit in 12 months. Smart move.

Taker_1293640d ago

you really don't know anything about business do you?

The Real Joker3640d ago (Edited 3640d ago )

332 billion yen? Isn't that like 8 bucks?
Edit: Comedy. Yes.

Vojkan3640d ago

LOL i hope you are joking :)