Quote:
Originally Posted by Flames89
I highly doubt that. Fitch downgraded them over a year ago and Moodys maintained the stable outlook for the company.
There are multiple re-org options ahead of them, including selling the PC division, selling TV division, or battling the huge pension liabilities they have. Their largest divisions are Insurance and Financial Services, and Film/Music. Further, despite the downgrade, analysts believe that Sony would not have trouble finding money with lenders due to the brand recognition and name value in Japan.
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Not to argue any of your points, but Free Cash Flow is negative as long as Sony as an entity keeps losing money. All of the loans and carving off of divisions means nothing if they cannot generate the money needed to sustain operations, service debt, and invest in the companies underneath the corporate umbrella. increasing debt is irrelevant if it can't be serviced.
For those with an interest, the explanation is here:
http://https://www.moodys.com/resear...ble--PR_291264
Is it all over for Sony and the PS brand? of course not. however the contrast between Sony and M$ is interesting. it has been suggested that M$ sell the Xbox unit because it doesn't make as much money compared to other parts of Microsoft. one company is definitely stronger financially.
we'll see what that means going forward as each platform tries to differentiate itself from the other.