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Sony To Raise $3.6 Billion In New Stock And Bond Sales
Sony is working to reverse its recent, troubled financial performance. The company is starting to turn things around with improvements to operating income following shuttering its PC division and adjusting other business units.
Today, the company announced a secondary stock offer and the availability of bonds that will raise a projected $3.6 billion. Sony says that the purpose of these offers is to improve the company’s financial standing and ensure the ability to invest in the future.
“The purpose of this fund raising is to secure funds to invest in growth and to strengthen Sony Corporation’s financial base,” the company writes. “In addition to securing funds for active and concentrated investment in businesses that are driving growth, Sony Corporation, by increasing shareholders’ equity, aims to secure its ability to make future further investment.”
Funds raised via the secondary share offer will support Sony’s growing image sensor business. The convertible bond offer will provide a foundation for funding that is both low-interest and stable over a longer period.
[Source: Sony]
Our Take
Sony is taking big steps to increase cash flow and get some breathing room. Things are turning around, but the process is slow. The gaming division (home to PlayStation and its related services) simply isn’t big enough to carry the entire company. PlayStation 4 and the related increases in PlayStation Network subscriptions have been a boon, but one business unit can’t prop up a company as large as Sony.
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