Sony in talks to buy Metro-Goldwyn-Mayer

“Sony Corp. said on Wednesday it was in exclusive negotiations with movie studio Metro-Goldwyn-Mayer Inc. on a possible takeover that could bolster its film library but put a dent in its finances,” Reuters reports. “Sony Vice Chairman Howard Stringer said at the electronics and entertainment conglomerate’s annual strategy meeting that it was ‘preparing an exclusive analysis’ of MGM and that it was ‘four or five days’ into a 20-day negotiating period.”

Reuters reports, “The deal would provide Sony with access to MGM’s 4,000-plus film library that includes the James Bond and Pink Panther titles to fulfill Chief Executive Nobuyuki Idei’s vision of an interconnected world linking content with Sony’s electronics. Sony is in the second year of a three-year, $3.1 billion restructuring plan aimed at overhauling profitability at its mainstay electronics business and fight off rivals Matsushita Electric Industrial and Sharp Corp.”

“Its revival plan hinges on the success of Idei’s vision, where Sony’s electronics are hooked seamlessly into a broadband network that can deliver content from the company’s movie and music studios,” Reuters reports. “So far, competitors, such as Apple Computer Inc. with its iPod digital music player, have been more successful in converting a combination of content and hardware into profits. Standard & Poor’s Ratings Services said on Tuesday that the possible acquisition of MGM by Sony could affect Sony’s credit quality.”

Full article here.

15 Comments

  1. Amazing how Apple’s vision is one step ahead of competition. Sony is just like MS, a 1,000 pund gorilla that it is too slow to make fast changes, in a faster changing technology era………

    When was the last time we had a great innovation/invention from Sony?the walkman?

  2. Sony makes some great consumer electronics. They don’t have to innovate. Besides, Innovating a TV or other form factors that the public expects usually is fruitless. They, like Apple, make quality products.

  3. I personally do NOT think Sony makes quality products. This has nothing to do with Apple, it is just my experience. My neighbor had to buy (anf pay for all thee) Playstation 1’s. Two had over heating problems and in the third the motor to spin the disk died. Playstation 2’s have been riddled with problems. My old Sony portable CD player was crap… really. I personally think their products are substandard, but they get by on their name. That is how I feel.

    Matthew

    I have never owned a Sony TV though so maybe those work better.

  4. Thats odd. I’ve never had any problems with my Sony brand electronics. As a matter of fact, its the ONLY brand I havent had problems with. Everything else has screwed me over in the end at one time or another, and I try to purchase the Sony brand whenever possible now. 2-Tube TVs, 1-Projection TV, VCR, Receiver, DVD Player, 200 Disc CD Changer, 300 Disc DVD changer, PS1, PS2 and have NEVER had a problem with any.
    Or maybe I just have good luck.
    But I will agree with the fact that Sony sure has slacked off in the innovation dept in the recent years. My only hope is that Apple will push to integrate a home entertainment network with Macs. If my livingroom setup had as many cool featurs as my Mac, I’d be in heaven.

  5. There is a huge difference between the Sony products and Sony branded products. On the more expensive end, you get products designed and built by Sony. They tend to have great fit and finish. On the lower end, you get shit products with the Sony name on them.

  6. “Sony makes some great consumer electronics.”

    Sony’s quality may have improved in the past couple of years, but I stopped buying Sony in the mid-90’s after the quality of their products dropped significantly. In the early-90’s “Sony” was synonymous with “quality.” Many people were willing to pay a little more for Sony figuring that they saved the trouble of trying to find something close for a little less money. I think that Sony tried to bite more off of the low–end market and, as a result, ended up becoming a lower-end company in some respects

  7. Sony is an acceptable middle-upper level producer of cheap consumer electronics. I have a 27″ Sony Wega television in my basement because I was looking for something reasonably reliable and cheap to have down there since we wouldn’t be watching it much. I would never consider a budget electronics manufacturer like Sony for any of the components I use daily, though.

  8. In my personal experience, Sony = Crap.

    I’ve had a Sony Trinitron TV, 2 car CD receivers, one home CD player, an amp, speakers, 2 original playstations, and one PS2, all dead. The only sony equipment that I’ve had that didn’t break was made in the 80s or before… I will never buy from Sony again.

  9. Louis B Mayer will be turning over in his grave. Bet he laughed like I did when Sony took over Harry Cohen’s Columbia. Everybody hated Harry, but the Japanese owning MGM never. I made MGM then got booted out like SJ at Apple. But never made it back because of Louis B. bastard. HaHaHa laughing at the Japanese. Fools.

  10. Between myself, my family, and friends, I have never run across a quality issue with Sony products. It is OK to admit another company makes quality products.

  11. no it isn’t OK jon. No one makes better stuff than Apple, and when they did, it was when Steve was not in charge.

    Repeat 100 times…………………………………………………….

  12. Totally unrelated to topic:
    You guys really think Sony is crap hardware? Wow. My experience has generally been positive. Sure, an early portable CD player required servicing shortly after purchase (under warranty), and a top end pro-sumer video camera required servicing after about 3 years, but other than that, two TV’s, another portable CD player, a mini-DV cam (VX2000, yea, I know, crappy audio gain) and a mini-disc player have all worked great. Touch wood.

    I’ve had more unreliable Apple hardware (3x power supplies for SE (last one fixed the issue apparently, since it still works), 1 x dead IIvx, 1x dead PB180c, 1xDOA iMac 400, 2xTiPB 1st gen with dodgy DVD drives (2nd gen replacement unit ok).

    The other machines I have and not had problems with have been an iMac 400 (replaced the DOA), Sawtooth G4/450, PM8500/132, 2nd hand IIvx, 2nd hand PM71000 and a 2nd hand PB170.

    On topic:
    Oh, yea, Sony buys MGM – wouldn’t an Anti-Trust suit help this one along?

  13. Never had a problem with a Sony product, but it’s time to pass te baton on to the Korean companies. Old Japanese companies have too much dead weight to change direction easily — Canon possibly excepted, although they’ve had their moments too.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.