Since Kazuo Hirai became CEO of the company, Sony has seen its stock value drop by around $8 billion, leading many analysts to argue that Hirai’s recent company acquisitions are misguided. The CEO has spent around $1.8 million since he was promoted in April, despite the fact that Sony has already been losing money. Tetsuro Ii, CEO of Commons Asset Management commented on the company:
There are signs of change, but it’s only a start. From what we have seen so far his strategy appears fractured and the investments aren’t going to be profit drivers. He should probably give a clearer explanation of his new Sony. The only way Sony is going to improve its finances is to earn.
Hirai defended recent acquisitions of cloud gaming venture, Gaikai, and medical equipment manufacturers, with the bailout of Olympus, at CEATEC, a consumer electronics show near Tokyo, saying:
As we do these acquisitions we are very mindful of our cash position. We have done a lot in terms of realigning our portfolio over the last six months. We have sold off some of our assets as well to generate cash and so it’s just a matter of making sure we keep that balance.
However, he acknowledged that a lot more needed to be done to show results, and it seems like there will be a little more pain for Sony before there are any results.