Sony Buys MGM For Close To $5 Billion

Sony hopes that their acquisition of Metro-Goldwyn-Mayer will give them more clout in Hollywood says analysts.

” The nearly five-billion-dollar investment with consortium partners is unlikely immediately to boost Sony’s sluggish core consumer electronics business but is part of a long-term strategy, theysaid.

Yoshimasa Maruyama, senior economist at Mizuho Research Institute, said Sony’s Hollywood expansion underlined its push to establish the Blu-ray disc as the DVD of choice for future releases. “

Sony’s consumer electronics arm has been struggling lately with losses posted for the past few quarters. What better way is there to push Blu-ray technology than to have complete control over which movies are released on the up-and-coming new technology.

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Yahoo! News, Financial Express, Servihoo