Sony Will Raise $2.9B in IPO, Poised for PS3 Price Drop
Tokyo-based Sony Corp. will net $2.9 billion when it sells 34.5 percent of Sony Financial Holdings Inc. October 11 in the Japan's biggest initial public offering of 2007. Sony Financial Holdings, a consolidated subsidiary of Sony Corp., is the company's insurance unit formed in 2004.
The company will sell 725,000 shares and offer an additional 75,000. Bloomberg spoke with analysts who speculated the move was meant to raise funds for the currently unprofitable game division and consumer electronics division.
Mitsuhiro Osawa, a Tokyo-based analyst at Mizuho Investors Securities Co., told Bloomberg the increased assets could allow Sony to pursue additional PlayStation 3 price cuts. The strategy could help Sony move more units in Japan, where the PS3 is being outsold 3-to-1 by the Wii.
"im looking forward to the PS3 selling at equal price with the X360 in North America and at a few ..."25 Comments
The Video Game Release List of 7/6 - 7/12
Tanks In Brothers in Arms: Hell's Highway Movie
New LEGO Batman Media Features Poison Ivy
Our Favorite Vacation Games: Shack on Holiday
Darksiders Media Is Apocalyptic
Mercenaries 2 Trailer Eats Helicopters for Breakfast
