Re: NIKON NEWS -- Worse than I thought (*NOT my words).
tntcorp wrote:
nikon & canon have a long history in optical design and camera manufacturing.
sony is a maker of electronics. sony bought konica-minolta to get into the dslr business. sony would love to buyout nikon to compete against canon.
Yes, buying Nikon would be the quickest path to the #1 position in the camera market to match their #1 position in imaging sensors. Sony has repeatedly stated this as their goal.
Sony could certainly benefit from acquiring the optical component of Nikon. The camera division is a bit behind technology wise compared to what Sony already has in house.
The real question is whether the goal of being #1 is still of primary importance to Sony. Being #1 in the rapidly deteriorating camera market may not make financial sense anymore.
Another consideration is what would Sony be will to pay to own Nikon's poorly performing camera business. For a company with pockets as deep as Sony, it is now very close to being possible to get Nikon's camera business for free, or even get paid to acquire it. The last time I enquired about the book value of Nikon the consensus I got from multiple investment banking firms was about $14 per share. Book value is the amount per share that the company could be liquidated for. With Nikon share price in the $7 range, theoretically Sony could make an offer to buy and get the camera division for fee. I think $7 is still not low enough to make such a move irresistible. I would think that number needs to be in the $5 range. But is is within striking distance.
Of course such a move would require a battle for shareholder support, and government permission. This is an expensive proposition at best. A straight purchase is the path of least resistance if in fact the camera division is in play.
This is all so fun to watch.
Sep 06, 2020 at 07:19 PM
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