TOKYO – With its acquisition of Metro-Goldwyn-Mayer, Sony is one step closer to its vision of linking hardware and content, and to winning the key battle for the next-generation DVD..Sony’s acquisition would appear to fit nicely into the Japanese company’s overall strategy of creating synergies between its consumer electronics and movies, music and games. Analysts and investors are worried about the potential damage to Sony’s balance sheet and have doubts about when and how the synergies between movies and electronics will be achieved..But they say the reasoning behind the acquisition was sound..”The MGM library is a rich source of content and potential profits for Sony,” said Kiyoshi Yamanaka at T&D Asset Management. Sony does not provide a breakdown of its DVD sales..Sony acquired Columbia Pictures in 1989 for $3.4 billion, which at the time was the largest ever acquisition by a Japanese firm. That deal caused numerous headaches for Sony because of losses from large budgets and box office duds..The MGM purchase could help stabilize earnings in its movie division. It may also advance Sony’s cause in the battle to establish a format called Blu-ray as the industry standard for the next generation of DVDs..”One of the important aspects of this deal with MGM is that it may help Sony prevail in the DVD format war,” Yamanaka said.

See more of the world that matters – click here for home delivery of the International Herald Tribune.< < Back to Start of Article TOKYO With its acquisition of Metro-Goldwyn-Mayer, Sony is one step closer to its vision of linking hardware and content, and to winning the key battle for the next-generation DVD..Sony’s acquisition would appear to fit nicely into the Japanese company’s overall strategy of creating synergies between its consumer electronics and movies, music and games. Analysts and investors are worried about the potential damage to Sony’s balance sheet and have doubts about when and how the synergies between movies and electronics will be achieved..But they say the reasoning behind the acquisition was sound..”The MGM library is a rich source of content and potential profits for Sony,” said Kiyoshi Yamanaka at T&D Asset Management. Sony does not provide a breakdown of its DVD sales..Sony acquired Columbia Pictures in 1989 for $3.4 billion, which at the time was the largest ever acquisition by a Japanese firm. That deal caused numerous headaches for Sony because of losses from large budgets and box office duds..The MGM purchase could help stabilize earnings in its movie division. It may also advance Sony’s cause in the battle to establish a format called Blu-ray as the industry standard for the next generation of DVDs..”One of the important aspects of this deal with MGM is that it may help Sony prevail in the DVD format war,” Yamanaka said. TOKYO With its acquisition of Metro-Goldwyn-Mayer, Sony is one step closer to its vision of linking hardware and content, and to winning the key battle for the next-generation DVD..Sony’s acquisition would appear to fit nicely into the Japanese company’s overall strategy of creating synergies between its consumer electronics and movies, music and games. Analysts and investors are worried about the potential damage to Sony’s balance sheet and have doubts about when and how the synergies between movies and electronics will be achieved..But they say the reasoning behind the acquisition was sound..”The MGM library is a rich source of content and potential profits for Sony,” said Kiyoshi Yamanaka at T&D Asset Management. Sony does not provide a breakdown of its DVD sales..Sony acquired Columbia Pictures in 1989 for $3.4 billion, which at the time was the largest ever acquisition by a Japanese firm. That deal caused numerous headaches for Sony because of losses from large budgets and box office duds..The MGM purchase could help stabilize earnings in its movie division. It may also advance Sony’s cause in the battle to establish a format called Blu-ray as the industry standard for the next generation of DVDs..”One of the important aspects of this deal with MGM is that it may help Sony prevail in the DVD format war,” Yamanaka said. TOKYO With its acquisition of Metro-Goldwyn-Mayer, Sony is one step closer to its vision of linking hardware and content, and to winning the key battle for the next-generation DVD..Sony’s acquisition would appear to fit nicely into the Japanese company’s overall strategy of creating synergies between its consumer electronics and movies, music and games. Analysts and investors are worried about the potential damage to Sony’s balance sheet and have doubts about when and how the synergies between movies and electronics will be achieved..But they say the reasoning behind the acquisition was sound..”The MGM library is a rich source of content and potential profits for Sony,” said Kiyoshi Yamanaka at T&D Asset Management. Sony does not provide a breakdown of its DVD sales..Sony acquired Columbia Pictures in 1989 for $3.4 billion, which at the time was the largest ever acquisition by a Japanese firm. That deal caused numerous headaches for Sony because of losses from large budgets and box office duds..The MGM purchase could help stabilize earnings in its movie division. It may also advance Sony’s cause in the battle to establish a format called Blu-ray as the industry standard for the next generation of DVDs..”One of the important aspects of this deal with MGM is that it may help Sony prevail in the DVD format war,” Yamanaka said.