leon
500+ Head-Fier
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Sony came out with a news release today (Feb 28), announcing that it will conduct a share swap with Aiwa, and they're aiming for October 1 as the date for the swap. The outcome is that Aiwa will be completely owned by Sony (I think Sony holds 60%+ shares in at the mo).
The reason is basically that Aiwa has eroded quite a bit of its own funds for a range of reasons. e.g. Aiwa's mid-2001 share issue collapsed due to the excessive fall of their share price, forcing Sony to come through with funding for them. The press release says that Aiwa no longer has adequate research/development in digital and networking technologies.
Sony aims to cut Aiwa's overheads to 1/3 of the current level. In the process, staffing at Aiwa will be reduced to around 2/3 of today's level. The Aiwa brand will be used so that it doesn't compete with the Sony brand, e.g. bolstering line-up, new products.
Thought I'd share this with you all.
The reason is basically that Aiwa has eroded quite a bit of its own funds for a range of reasons. e.g. Aiwa's mid-2001 share issue collapsed due to the excessive fall of their share price, forcing Sony to come through with funding for them. The press release says that Aiwa no longer has adequate research/development in digital and networking technologies.
Sony aims to cut Aiwa's overheads to 1/3 of the current level. In the process, staffing at Aiwa will be reduced to around 2/3 of today's level. The Aiwa brand will be used so that it doesn't compete with the Sony brand, e.g. bolstering line-up, new products.
Thought I'd share this with you all.
