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Have You Ever Wondered How Sony Could Afford Gaikai?

Posted by Sammy Barker

Convertible bonds

Sony is supposedly a shuffling financial wreck, but it still stumped up the $380 million required to acquire Gaikai. That doesn’t quite add up. Indeed, it turns out that the company is not quite as broke as it seems, having recently offloaded a slew of convertible bonds to the tune of $1.9 billion. A third of that cash will be reinvested in Japanese optics company Olympus Corp, while some will be used to finance its high-profile purchase of – you guessed it – Gaikai. The organisation is looking to use the rest of the money to repay debts and increase its financial focus on CMOS image sensors.

The Japanese giant’s most recent financial report recorded a net loss of $198 million, which represented a 42.6 per cent decrease year-on-year. In short, things certainly aren’t looking rosy for the company – but at least it's heading in the right direction.

[via sony.net, reuters.com, joystiq.com]

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User Comments (1)

Slapshot

#1

Slapshot said:

This is how a company should be restructuring to stay competitive and profitable. Sony's definitely cutting their loses, so hopefully things will turn around for them over the next few years - PS4 not being a massive powerhouse is a good sign that they've woken up too!

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