Sony
Tokyo, Japan
Industry: Technology/Electronics
Region: Japan 🇯🇵
Year Founded: 1946
IPO Date: 09-12-1958
Market Cap: $104.48 billion
Number of Employees: Approx. 111,700
Revenue: $85.96 billion (fiscal year 2022)
Net Income: $7.53 billion (fiscal year 2022)
Sony Corporation
Sony IPO
Sony’s initial public offering (IPO) took place on December 9, 1958. The company was listed on the Tokyo Stock Exchange.
At the time of the IPO, Sony issued 220,000 shares priced at 2,500 yen per share. The IPO raised approximately 550 million yen in capital for the company.
Sony’s IPO marked a significant milestone in the company’s history, providing the necessary funds for expansion and investment in research and development.
This allowed Sony to continue developing innovative products and establish itself as a leading global electronics and entertainment company.
Sony IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Sony’s Prospectus here.
Company Overview & History
Sony Corporation, founded by Masaru Ibuka and Akio Morita, traces its roots back to 1946 in Tokyo, Japan. Originally named Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Corporation), the company started as a small electronics shop.
Sony’s breakthrough came with the introduction of the transistor radio in 1955, which revolutionized the audio industry. Since then, Sony has been at the forefront of technological innovation, consistently delivering high-quality consumer electronics, gaming consoles, and entertainment content.
Today, Sony operates in various sectors, including electronics, gaming, entertainment, and financial services. The company’s diverse product portfolio includes televisions, audio equipment, digital cameras, mobile devices, gaming consoles (PlayStation), and professional broadcasting equipment.
In fiscal year 2022, Sony reported revenue of $85.96 billion and net income of $7.53 billion. The company’s financial performance reflects its strong market presence and successful product offerings.
Sony’s commitment to innovation and creativity has earned it a global reputation for high-quality products and entertainment experiences. The company’s brands, such as Sony, PlayStation, BRAVIA, Walkman, and Xperia, are widely recognized and trusted by consumers worldwide.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2022 | 88.3 | 7.8 | 18.8 | 11.0 |
| 2021 | 84.6 | 11.0 | 12.8 | 12.7 |
| 2020 | 76.0 | 5.4 | 11.6 | 12.4 |
| 2019 | 78.0 | 8.2 | 11.4 | 11.3 |
| 2018 | 76.9 | 4.4 | 9.9 | 11.3 |
| 2017 | 70.7 | 0.7 | 5.7 | 7.5 |
| 2016 | 67.3 | 1.2 | 5.7 | 6.2 |
| 2015 | 74.8 | -1.1 | 3.9 | 6.9 |
| 2014 | 77.7 | -1.3 | 4.0 | 6.6 |
| 2013 | 72.3 | 1.1 | 5.7 | 5.1 |
| 2012 | 70.2 | -5.1 | -5.4 | 6.3 |
| 2011 | 73.8 | -2.6 | -1.5 | 7.2 |
| 2010 | 68.0 | 0.1 | -1.8 | 9.9 |
| 2009 | 71.1 | -1.0 | -1.2 | 4.1 |
Business Model
Sony’s business model revolves around designing, developing, manufacturing, and selling a wide range of consumer electronics, entertainment products, and services. The company operates through several segments, including Electronics, Gaming, Music, Pictures, and Financial Services.
In the Electronics segment, Sony offers a diverse portfolio of products, including televisions, audio systems, digital cameras, mobile devices, and home appliances. The company focuses on delivering cutting-edge technology, innovative design, and superior user experiences to meet the evolving needs of consumers.
Sony’s Gaming segment is renowned for its PlayStation brand, which includes gaming consoles, software titles, and online services. The PlayStation platform has a large and dedicated user base worldwide, making it a significant revenue driver for the company.
Sony’s Music segment encompasses recorded music, music publishing, and artist management. The company owns a vast catalog of music rights and works with renowned artists, allowing it to capitalize on the growing digital music market.
In the Pictures segment, Sony produces and distributes motion pictures, television content, and other entertainment programming. The company’s diverse content portfolio includes blockbuster movies, popular TV shows, and original productions, catering to a global audience.
Sony’s Financial Services segment provides a range of financial products and services, including insurance, banking, and credit services. This segment contributes to the company’s revenue diversification and stability.
Market Cap Over the Years
| Year | Market Cap(₩T) |
|---|---|
| 2023 | 371.68 |
| 2022 | 471.36 |
| 2021 | 527.30 |
| 2020 | 362.68 |
| 2019 | 296.77 |
| 2018 | 320.88 |
| 2017 | 253.75 |
| 2016 | 147.90 |
| 2015 | 175.55 |
| 2014 | 164.62 |
| 2013 | 186.23 |
| 2012 | 142.37 |
| 2011 | 126.17 |
| 2010 | 100.83 |
| 2009 | 62.89 |
| 2008 | 76.52 |
| 2007 | 74.59 |
| 2006 | 95.17 |
| 2005 | 63.66 |
| 2004 | 67.39 |
| 2003 | 37.49 |
| 2002 | 38.97 |
| 2001 | 28.29 |
Risk Factors
Sony faces various risk factors that could impact its operations and financial performance. These include intense competition in the global electronics and entertainment industries, rapid technological advancements, changing consumer preferences, and potential supply chain disruptions.
The company is also subject to regulatory and compliance risks, including changes in laws and regulations, intellectual property rights, and content licensing agreements. Economic conditions, currency exchange rate fluctuations, and geopolitical factors can also impact Sony’s business and financial results.
To mitigate these risks, Sony focuses on continuous innovation, strategic partnerships, efficient supply chain management, and diversification across multiple business segments.
Market Opportunity
Sony operates in a dynamic market with significant opportunities for growth. The increasing demand for consumer electronics, gaming experiences, digital content, and entertainment presents opportunities for Sony to expand its customer base and enter new markets.
The company’s expertise in hardware, software, and content creation positions it well to capitalize on emerging trends such as virtual reality, augmented reality, streaming services, and e-sports. Sony’s commitment to delivering immersive entertainment experiences and innovative technology drives its market opportunity.
Competitors
- Samsung Electronics Co., Ltd.
- LG Electronics Inc.
- Panasonic Corporation
- Toshiba Corporation
- Sharp Corporation
Key/Fun Company Facts
- Sony Corporation was founded by Masaru Ibuka and Akio Morita on May 7, 1946, in Tokyo, Japan.
- The company’s name “Sony” is derived from the Latin word “sonus,” meaning sound, and was chosen to represent the company’s focus on audio technology.
- Sony’s first major success came with the introduction of the transistor radio, the TR-55, in 1955. It was a compact, battery-powered radio that offered high-quality sound and portability.
- The Sony Walkman, introduced in 1979, revolutionized portable music and became an iconic product of the 1980s.
- Sony’s PlayStation gaming consoles have been immensely popular since the launch of the original PlayStation in 1994. The PlayStation brand has since become synonymous with high-quality gaming experiences.
- Sony Pictures Entertainment has produced numerous blockbuster films, including the Spider-Man franchise, James Bond films, and animated features like “Spider-Man: Into the Spider-Verse.”
- The company’s headquarters, Sony City, is located in Tokyo, Japan, and serves as the hub for its global operations, research, and development activities.