Buying In and Selling Out

What will be the most interesting merger, acquisition, or corporate restructuring of this year?

A Yahoo/Microsoft merger almost makes too much sense, so it won’t happen.

Something big needs to happen between the Detroit Big 3. Not a Ford/GM merger, but a Detroit/Japanese merger or something along that line.

However, I think the real shocker will be a restructuring with a movie studio or record company. Their current strategies just aren’t working.

A split between Sony’s entertainment divisions, Sony Pictures Entertainment and Sony BMG Music Entertainment and the rest of their more consumer electronics efforts makes sense.

Sony killed their Walkman line with their refusal to go MP3 for the longest of times to protect SonyBMG’s profits from piracy. Now SonyPictures is going to get harmed by relying on Sony Electronics’ Blu Ray format.

Sony’s Music and Movie divisions need to be able to operate in their best interests, not in the interests of Sony Electronics and vice versa. A split would make sense.