Sony Investing Around $642 Million In Olympus To Become Largest Shareholder
Sony is going to invest around $642 million (50 billion yen) in Olympus. Olympus is a Japanese manufacturing company that is known for making cameras, medical equipment, and manufacturing components. Olympus is currently on trial for hiding investment losses over the last 20 years.
Sony will become the largest shareholder in Olympus through the investment. Olympus reported a net loss of around $630 million (49 billion yen) for the last fiscal year due to poor financial decisions. Olympus and three former high-ranking executives pleaded guilty to the fraudulent financial reports.
Around $1.7 billion of losses were misreported in the last couple of decades. Olympus cut 2,700 jobs and shut down 40% of their factories to reduce costs. The company had a 60% drop in operating profit last quarter too.
Sony and Olympus will create a business unit that focuses specifically on medical equipment through their partnership. Sony’s operating profit was down 77% to only $79 million last quarter.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry