Sony Corp (ADR) (NYSE:SNE) Purchases Optical Data Storage Startup Firm

Sony Corp (ADR) (NYSE:SNE) has made a bold step in the acquisition of a relatively new optical data storage company known as Optical Archive Inc.

The decision has been described as valiant because the Japanese firm is used to providing products that are oriented towards individual consumers rather than other firms. The acquisition is, therefore, a new entry into unchartered territories.

The new acquisition that was previously owned by Frank Frankovsky is expected to bring in its technology that will be integrated by Sony to provide new optical media products that will mostly target business clients.

Sony is set to reveal more details about the contract on Wednesday though the company will not reveal anything concerning the financial terms of the deal. The acquisition leaves a lot of unanswered questions especially about the particular nature of the products that will result from the spinoff.

It is interesting tonote that Frankovsky was once an executive at Facebook Inc (NASDAQ:FB) where he was the head of supply chain operations and hardware design for roughly five years. After serving his term at Facebook Inc, he left last year and established Optical Archive. He also has recognition from other projects, so it is clear that he can deliver.

Sony is now in the limelight as analyst wait eagerly to see what the firm will introduce as a result of the acquisition. It is also noteworthy that since the start-up began operations, it has not yet revealed its actual product plans.

However, Frankovsky released a statement where he claimed that it was the intentions of his company to operate with a high level of discretion. Additionally, he claimed that the main goal of his company is to offer alternative data storage facilities that will not require frequent use. He claimed that optical discs were a better alternative because they are more affordable, cheaper to maintain, are durable and most importantly the relay data at faster speeds. It is clear that Sony Corp (ADR) (NYSE:SNE) identifies the Startup’s potential and is looking to exploit it.

Culver Stinson

Culver Stinson

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.