Sony Corp. (2.8%) (SNE, Financial) (SNE – $59.18 – NYSE) is a conglomerate based in Tokyo, Japan focusing on direct-to-consumer entertainment products supported by the company’s technology. Sony is the #1 integrated global gaming company and we expect the gaming segment to contribute over 1/3 of total EBITDA (ex-financial) in 2020 following the much anticipated launch of the PlayStation 5, probably for the 2020 holiday season. Sony Music Recording commands #2 and Music Publishing #1 global share. Sony also operates the Sony/Columbia film studio, which is well positioned in the OTT streaming wars as a major supplier of high quality library shows like Seinfeld and new movies like Bad Boys for Life. It is an image sensor leader with over 50% global revenue share and is the dominant supplier to Apple iPhone. Sony’s Electronics business is a globally diversified cash cow. It also holds majority ownership of Sony Financial Services. Sony has net cash on its balance sheet enables the company to manage through COVID-19; online game usage has increased dramatically with stay-at-home restrictions but business such as movies are impacted by production stopping and releases delayed.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund first-quarter 2020 shareholder commentary.
