Sony Will Soon Have Over $13 billion To Invest On Merger & Acquisitions
Sony Group Corporation will soon have a total of over 13 billion US Dollars to pursue proactive merger and acquisitions, based on the latest information.
According to a new report from Financial Times, plans are underway at Sony Group Corporation to secure 8 billion US dollars of additional funds for proactive merger and acquisitions. This is in addition to the previously reported 5.1 billion US Dollars that the company has already allocated for this purpose, bringing the total funds available to invest on mergers and acquisitions to $13.1 billion US Dollars.
Sony’s Senior Vice President and Chief Financial Officer, Hiroki Totoki, stated that consolidation in entertainment has been happening and Sony does not want to be left behind. While he spoke for the company as a whole, given that its PlayStation division is among the most profitable, it’s likely that a decent chunk of these funds will be used to acquire game studios or even publishers.
Just how much of the 13.1 billion US Dollars will be spent by Sony Group Corporation towards the expansion of its gaming and entertainment division remains to be seen. Given that it is one of the company’s most profitable businesses, it’s likely that there will be some developer acquisitions made by SIE sometime in the future.
PlayStation President Jim Ryan recently stated in an interview with Famitsu that the Japanese market has been and will continue to be one of the most important gaming markets. He added that not only is it the second largest market in the world, but, more importantly, it is the birthplace of the PlayStation brand. As such, potential targets for acquisition may include Japanese publishers like Capcom, which has a net worth of 8.67 billion US Dollars as of May 22, 2023, and Square Enix, which has a net worth of 6.02 billion US Dollars as of May 19, 2023.