Sony, the Japanese gaming giant, is reportedly on the hunt for new studio acquisition opportunities.
This information comes to light via a recent job listing, suggesting that Sony’s aggressive acquisition strategy, which started in mid-2021, is far from over.
Sony’s Acquisition Spree
Sony has been actively acquiring studios since mid-2021, with Ballistic Moon being one of its latest acquisitions.
However, Sony’s main competitor, Microsoft, is on the brink of completing its $68.7 billion acquisition of Activision Blizzard, the largest deal in gaming history.
Despite Sony’s significant sales lead in the current console generation, it cannot afford to be complacent.
Sony’s Job Listing: A Clue to Future Acquisitions
A job ad recently surfaced, indicating Sony’s intent to bolster its M&A team. The listing, first spotted by Reddit user Zhukov-74, details a managerial role based at Sony Interactive Entertainment’s headquarters in San Mateo, California.
The ad states that Sony is seeking an experienced economist or business administrator to help identify “inorganic growth opportunities” through acquisitions, joint ventures, investments, or a combination thereof.
While the job listing alone doesn’t conclusively prove that Sony’s acquisition spree will continue, it aligns with a recent report suggesting that Sony is planning more PlayStation acquisitions in the near future.
Sony’s Potential Spin-Off Strategy
Sony is reportedly considering spinning off its financial services division as a publicly traded company. This move would allow Sony to raise additional funds for acquisitions without accruing more debt. As of March 31, Sony’s total debt was approximately $30.5 billion, with a debt-to-equity ratio of 3.4.
Sony’s acquisition strategy differs significantly from Microsoft’s (though, the latter’s most recent case might be paused soon). While Microsoft has often made high-profile moves, such as its 2021 acquisition of Bethesda owner ZeniMax Media for $7.5 billion, Sony has shown a preference for acquiring smaller studios more frequently.
Given Sony’s existing debt-to-equity ratio, funding future acquisitions with additional loans could be risky, which might be why a partial spin-off of its financial services business is under consideration.