Sony Financial Unit IPO May Raise 320 Billion Yen

Sony Corp., the world's second- largest maker of consumer electronics, said the initial public offering of its financial unit may raise as much as 320 billion yen ($2.8 billion), Japan's largest share sale this year.

Sony's decision to seek a lower price may stoke concern the fallout from U.S. subprime loan defaults is sapping demand for Japanese financial firms, the worst-performing group on the Topix index this year. Sony needs funds to develop new products after lagging behind Nintendo Co. and Samsung Electronics Co. in sales of game consoles and liquid-crystal display televisions.

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The Dude3933d ago

How much debt is sony in? Thats about 2.7 billion us dollars. Sony looks to be in trouble with this and the sale of the cell. Bad year for sony. Eventually sony is going to run out of things to sell to keep it a float.

sajj3163933d ago

This is the intent of any IPO offering. RAISE CASH!! If Sony is going to cut the price of the PS3, it will need to raise cash in order to offset loss per unit sold. I don't think it will offset loss completely but it will at least lessen the blow.

DrWan3933d ago

Do you know what IPO is? Initial Public Offering, Sony's basically getting money for basically selling them nothing to begin with, it's like when Google went public, it's the best way to raise cash by creating "shares" from a new company.