Does It Make Sense For Apple To Buy Sony?

October 27th, 2010 - 8:39 pm ICT by Pen Men At Work  

ipsp-1 October 27, 2010 (Pen Men at Work): Sony’s stocks have shown improvement of 3% recently, all on account of rumors. The current grapevine is abuzz with the news that the company might be acquired by Apple. The later can easily afford the deal though. It’s balance sheets currently show $50 billion in cash along with a market cap of market cap of $282 billion.

Speculations are rife right now. But the fact remains that Apple might like to own a slice of Sony’s gaming market that includes the Play Station line of products. Apple does not seem to have anything like it right now and the market leaders of gaming are Sony, Microsoft and Nintendo in that order.

However, Apple might have to get rid of some of the business interests of Sony if it does get to own the company. Apple has its own business for distributing content while Sony owns a movie studio. The partners of Apple would certainly not like to see Steve Jobs as their competitor. The digital camera and television screen businesses might get a chance to stay with Apple though. The brand name of Apple might just see them getting sold at premium prices.

The growth in revenue as well as the profits from operating reflect on the poor management by Sony. Apple does not have the required expertise to turn around a huge and poorly run company right now. The best days of Sony are all in the past now. A company like Apple would also have to exert itself to its very limit in order to turn around Sony at present.

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