Sony financial IPO may subsidize PS3 cost

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Sony financial IPO may subsidize PS3 cost

Posted Sep 4th 2007 6:30PM by Andrew Yoon
Filed under: Business

Sony will sell about $2.9 billion worth of shares in a new IPO for its insurance unit, Japan's biggest IPO this year. 34.5 percent of Sony Financial Holding Inc. will go on sale in the Tokyo Stock Exchange on October 11th. It's expected that the money generated from the IPO will raise funds for the consumer electronics and games divisions.

"Sony could use the funds for various options to strengthen its electronics and game businesses,'' said Mitsuhiro Osawa, a Tokyo-based analyst at Mizuho Investors Securities Co. "A cut in the price of the PlayStation 3 is one option,'' said Osawa.

Analysts are predicting that another PS3 price cut may happen in the coming months. Certainly, the gain of nearly $3 billion in funds will certainly help subsidizing any losses that Sony would incur from such a move.

[Via GI.biz]

Tags: ipo, sony, sonyfinancialholding, stock

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(Page 1)

1. I love how people are going to look up IPO on Wikipedia and pretend they knew what it meant all along.

Posted at 6:50PM on Sep 4th 2007 by ClarkyCat

2. I think Sony would want to focus more on the format than console war, I am probably wrong, but I wouldn't be surprised if Warner made a little announcement.

Posted at 6:51PM on Sep 4th 2007 by Jeff

3. Sony is in the same boat as MS was in. I dont think this is too big a deal. If you have the money to take from other divisions, and you think its worth the investment, why not? Though I do think they still have a long way to go to truly be in the console war race. Atleast here in the U.S. I guess they were doing ok in Japan but I think the US is what counts more.
Maybe if they can get out these games they keep mentioning, then they can be a true player in this generation. But as of now they arent. I know myself, am not really satisfied yet. They have yet to show me that purchasing a PS3 was a very good decision. After owning a and still owning a 360, my opinion is still with the 360 in control. Even with the PS3's line up this fall/winter, I dont think it matches the proven 360. I would like to say otherwise but honestly I really cant.
Perhaps more money now, will lead to buying rights to games for exclusives. Who knows? Only time will tell....

Posted at 7:15PM on Sep 4th 2007 by KsE 79

4. @2 helping the console helps the format indirectly at worse. Hell i wouldn't have 6 Blu-ray movies if it wasn't for the PS3

Posted at 7:29PM on Sep 4th 2007 by Kxpuc

5. im totally going to buy some of this freed up sony stock, in a couple years the profit margin is a probably a safe %25

Posted at 7:51PM on Sep 4th 2007 by Anthony Pittarelli

6. I was on Xbox360fanboy.com and I notice that they are getting Marvel vs. capcom on the marketplace I envy them I just wish that Sony can score this for the Ps Store I would get this first day

Posted at 8:42PM on Sep 4th 2007 by ekbigpimping

7. The "story" is Sony is making a new public offering to determine demand in a tenuous market sector.

This didn't even come from Sony.
It is a third party analysts "opinion" that: "Sony could use the funds for various options to strengthen its electronics and game businesses."

Don't really see what this has to do with the PS3.

Posted at 8:49PM on Sep 4th 2007 by jyorgan

8. I think its both for the format war and the console war, which are fortunately tied together for Sony. Cheaper PS3s, more games, and more blu ray movies will all support a win for Sony in the long run.

Posted at 9:06PM on Sep 4th 2007 by ruibing

9. No, they're not getting it. Some talking head at Marvel just said it'd be nice. Another thing that'd be nice is if PS3 got Bioshock, but guess what?

Posted at 9:26PM on Sep 4th 2007 by upz

10. KsE 79, what a MEH comment! You didn't say why you preferred 360, I mean, what games are you playing?

Bioshock, Schmioshock. Ratchet and Clank and Little Big Planet are not coming to 360. Sure, diehards don't care. But these two titles will be BANGIN come holiday retail, for all those people at Target and Wal-Mart who are busy raising kids and don't have time to profess opinions on here.

Posted at 9:39PM on Sep 4th 2007 by John

11. Bioshock is one reason. I also look forward to Halo 3 Mass Effect, GTA w/ extra content, and have enjoyed several titles over the past year. Many games have kept my interest which is not what I can say for my PS3 games. They wear out on you too quickly and have not impressed me.
And Big Planet does not interest me at all. Ratchet looks like it could be fun though, but I see that as a renting game only.

Posted at 9:51PM on Sep 4th 2007 by KsE 79

12. In a Bloomberg article from Aug 15 quoting a SONY exec from May 2007 made it seem that the money raised from the IPO will be used by Sony Financial themselves:

Quote:

The firm needs to raise funds to expand because ``Sony Financial is getting bigger,'' Hiromichi Fujikata, the company's executive vice president, said in Tokyo on May 25.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aq.zuWB70IZs

Posted at 10:15PM on Sep 4th 2007 by Kspraydad

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