Companies buying stock in Sony? Sounds good to me!

I know Dubai is where the highrollers vacation. Just more revenue for Sony, which is a good thing.

psn id: gingo.... i'm glad they decided to buy into sony rather than nintendo but i suppose sony is more profitable with their tv's and phones aswell

hey im in Dubai right now lol

hey im in Dubai right now lol

I can see the move they made by investing in Sony's electronics firm. Its not just for gaming as another member mentioned.

The $500mil isnt an exact number it's just an estimation so people know in a more generalized economic term how much they paid.

I dont think the 500mil is really all that substantial I mean Sony's been blowing a lot of cash lately to get the PS3's market on track, the new ad campaign is probably aleast 100 million bucks.

I find it funny that people think Microsoft make more then Sony, look it up you will be suprised Sony makes more the Mircosoft.

@dandad1

You are correct. Sony makes quite a large amount more than M$.

@dandan1 and Lithgow:

Depends on what you mean by "making more" than Microsoft. Yes, they do bring in more revenue than Microsoft, but Sony's profit margins are vastly, vastly lower (which makes sense because they are a hardware company, whereas Microsoft is a software company). The end result is that while Sony brings in about $19 billion more dollars--their net income is almost $18 billion dollars less per quarter than Microsoft, based on the last quarterly numbers.

@ artG

unless you define REVENUE as; 4. the return or yield from any kind of property, patent, service, etc.; income.

@powerSURG:

Revenue is income that does not take into account ANY costs, which as you know, is not always a great indicator of whether or not an operation is profitable. Revenue is simply what you get back from selling your goods or services, but after you take out cost of goods sold, fixed costs, taxes, depreciation on equipment, GSA, etc., that gets you down to net income, which is what you have left over from revenue after all your costs have been taken out.

You could earn revenues of a trillion dollars, but if if you're costs are more than a trillion, that is a losing operation and not worthwhile.

so does anyone here know what i need to do to get a theme? and how to get that and transfer it to my ps3? i only ask because ive never downloaded a theme before or how it all works, if anyone can please give me an answer i will appreaciate it.

@leeman & @ArtG.......

      WOW revenues and all Sony is a major company and you said it before MS is just a software company. Sony has branched out to all types of media, gaming, photos, movies which is a big revenue, music, recording, software and hardware, so how dare anyone can say MS makes more than Sony without self evidence of that statement. I'm not saying Sony is bigger than MS i'm just saying show the proof if not... then theres not need of a fanboyist statement.

@Naucious23

Here's the proof:

http://finance.yahoo.com/q/is?s=MSFT&annual

http://finance.yahoo.com/q/is?s=SNE&annual

Those are links to the past three quarterly fillings of both Microsoft (MSFT) and Sony (SNE).

Note that Sony indeed has more revenue than Microsoft, but then take a look at both gross profit, operating income and net income. The difference is extraordinary.

@ArtG.....

I'm glad that you did show me proof and i dont know wether to believe it or not. But i must say thank you for at least showing proof rather than ranting and raving that your statment is true however... by looking at your proof something is quite odd the numbers dont add up and every time i bring up the site sony's numbers keep changing drastically. One minute their high next time i get on it, it's drastically low. So i dont know if I can go based off of what you have given me but i will say Imma leave this one as a draw lol. But being that microsoft is just software their costs revenue due seem to be at a much lower rate than sony who are paying more into their cost productions.

 You guys are reading the top line figure (Revenue less Cost of Revenue ) - you need to look further down at Net income attributed to shares - this is the return on investment. This is what you make.

 In basic terms $50 Billion in capital is deployed in order for the company to make $1 Billion. IE: the Price Earning (PE Value) is such that for every dollar you invest, it takes 50 years just to get your money back. When adjusted for inflation, you need 74 years before you earn back what you paid... That is pretty bad as a reasonable PE is about 10 - 15 if the company has good growth opportunities...

Sony makes very little money and that is why Dubai-IC purchased a share holding - Sony is in distress. This is the same reason Abu Dhabi also purchased 8% of AMD as the company is in debt and the share price is low.

 Abu Dhabi is using the high oil price and low price of distressed western companies to make profits. The United Arab Emirates (that's Dubai) has pegged its currency to the US Dollar. Problem is the USD is falling in value and at the same time inflation in Dubai is running at 9%. The high oil dollars cant be kept in the bank with international lending at 7% as it would loose 2% each year in real terms. Hence they have in the past two months purchased shares in large but troubled businesses. (1) Citibank who is having capital adequacy issues due to the mortgage crisis. (2) AMD which has fallen $5 Billion in debt (3) Sony Corp falling PE and struggling to raise cash.

The aim is to buy AMD cheaply and package for sale/merger with NVidia. Sony on the other hand is exactly 1/3rd of its former capital and has the worst PE on the Tokyo & NYSE. Its a great time to buy in and then sell off the film studio's, BMG Music JV and break out the electronics business with someone like Samsung.

These are Venture Capital outfits directly owned by Arabs governments which are converting high oil price cash and buying into cheap western shares. Most companies targeted are for breakup. Go check their track record...They dont specialise in "running businesses".

 @The Cleaner.....


The question.... Is M$ a bigger company than Sony? No looking into it I've found that Sony is Larger...

M$ does profit more due to low employment but Sony has 163,000 EE's est. working for them than 79,000 with M$ which makes sony the bigger company



http://en.wikipedia.org/wiki/Sony

http://en.wikipedia.org/wiki/Microsoft

@Naucious23  

The question of size.... Enron was "larger" than Sony. Enron revenue was $107 Billion so if we use your perspective of a "bigger" company then Enron was big...they are also bankrupt.

As for counting staff as a measure of being "bigger" Sony has slightly less staff than Delphi Corp (Auto parts) who after laying off more than 70,000 still have 171,000 employees.......You also understand that Delphi is in chapter 11 and announced last year that it intends to sell or close down 21 of its 29 factories. I'd suggest that Delphi might be "big" but it isnt a succesful company.

Revenue and number of staff are not good measures.

A better measurement of "Bigger" might be in what someone is willing to pay for the company. Microsoft is currently worth a touch over $313 Billion in cash. Based on the price paid by Dubai-IC Sony can be purchased for just $43 Billion. Compare that to Nintendo $81 Billion. Sony is small and is getting smaller each year.

What makes this Dubai-IC deal interesting is that they could buy management control of Sony (including a 10% share premium) for $23 Billion and make a quick bundle breaking Sony up. IE the sale of all the divisions might get them $50 Billion... Thats probably what these VC's have in mind.

Sony paid $2.6 Billion plus assumed $2 Billion of debt (total $4.6Bn) buying MGM from Providence Equity Partners about 4 years ago. So Dubai-IC could resell MGM to Time Warner for at least $5 Billion.  The rest of Sony Pictures Entertainment (Columbia, Tristar & Sony Picture Classics) could be sold off for near $20 Billion as that part of the business is good. BMG could get about $1 Billion in a sale to Virgin and Samsung would probably take the Bravia line & brand name for $8 Billion based on current profit contribution. That would leave just $16Bn of asset sales of consumer electronics, camera's, the Ericson JV and ....the SCE division. Microsoft would buy Sony's Computer Entertainment division for $4 Billion (after all that is just seven weeks profit to them).... Dubai-IC could be onto a good thing. If they pull this off they would make $7 Billion profit.

@Cleaner

I understand that having a bigger company doesn't necessarily mean that it's good that just means more cost into production value. I'm well aware of that working for DHL which is a major shipping company globally. With that EE's have been cut just for wages to raise and revenue to soar.

 But like I said the main thing that I was debating on is M$ a bigger company than Sony and I say no. Yes from your statement and by looking it up MS is more successful AS A COMPANY.

 Now if we switch it to gaming then I think we can honestly say Sony is successful, what i mean by that is by history numbers. PS3 is doing better in it's first year than XBOx360 first year correct? Lets not even talk about PS2 vs. Xbox. So since this is a gaming site Imma stick to the subject. Sony is better than MS in gaming but MS is gaining numbers due to a head start. Sony is much bigger. (sorry if i wasn't specific on my statements.)

I understand what your saying, if we look at total Gaming revenue for each - Nintendo with Wii & DS is now  the largest and still growing at a rapid rate. Sony is in second place with PS2, PS3 & PSP sales and Microsoft is currently in third place with XBox 360.

Nintendo is growing fast as 2006 sales were $7.8 Billion and a profit of $1.4 Billion - Nintendo current 2007 calander year sales of $13.6 Billion and profit of $2.2 Billion

Sony's 2006 sales where reported as $8.6 Billion with a loss of $2 Billion the 2007 calander year forecast from Sony has not been announced but the market estimates is for $9.2 Billion sales and a loss of $1.1 Billion.

Microsoft Gaming revenue jumped by 90% with revenue of $1.9 Billion for first quarter 2007 reported and full calander year result of $8 Billion. The division is currently at break even (no profit no loss) thanks to Halo 3.

As you can see Nintendo is accellerating revenue & profit and MS is closing the gap on Sony hence 2008 is now critical for Playstation... Sony needs both revenue growth and needs profit quickly.