by deep pocketed American tech company like Google or Microsoft, maybe even Apple. These companies have billions in overseas cash that they need to do something with. Latest earnings disappointment probably raises the probability of this happening as management has lost most credibility and investors are impatient.
The other shoe could drop tonight in Tokyo.
Due to the intense competition, Sony has failed to meet the sales target for phones; and in July, it had reduced its annual sales target of smartphones to 43 million units, down from its earlier forecast of 50 million units.
Also, for the first time in its history, Sony will discontinue dividends.
Turn the Vita into a cell phone with gaming capability and its own unique operating system. SNE's phone line, as far as sales is concerned, is complete garbage. They could easily eat some of AAPL's and Samsucks marketshare with a Vita phone. It would be something unique that its competitors would find impossible to replicate. It's not rocket science.
They also need to branch out into non-consumer driven markets, but that's another post.
Yeah I just sld at a profit but I did not see that 1.5 ish dollar loss coming. This is going to be a decent flipping stock after the bloodshed.
Sentiment: Strong Sell
For those who care, the $1.7 billion goodwill impairment is from the Feb 2012 buyout of Ericson and was long baked into the price. it's not a loss from operations and the US market is probably overreacting.
$150 billion valuation is not unheard of. All they need is get early into any of the future consumer product segments and try to dominate it for a couple of years. In a meantime, they need to unload everything that is losing money for them (which apparently includes mobile division)... which will create more opportunities to reload your position.