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Sony enlists Morgan Stanley and Citigroup in possible division split

Sony enlists Morgan Stanley and Citigroup in possible division split

Thu 30 May 2013 6:24pm GMT / 2:24pm EDT / 11:24am PDT
Business

The company looks into investor's proposal to split off its entertainment arm

Sony Corporation is working with Morgan Stanley and Citigroup on the possible split of electronics and entertainment businesses, according to a report by Bloomberg. Two weeks ago, outspoken investor Daniel Loeb spoke with Sony chief executive officer Kaz Hirai about the proposal, with Sony's board of directors starting a formal discussion on the idea around a week ago.

Sony's stock has risen 8.2 percent since the news of Loeb's proposal was reported. Loeb's stake in Sony is valued at around $1.1 billion and he believes that splitting off the entertainment division will give the electronics division a chance to focus on becoming profitable.

Sony, Morgan Stanley, and Citigroup all declined to speak about the story.

3 Comments

Adam Campbell Associate Producer, Miniclip Ltd

1,179 967 0.8
They're getting quite serious about this option.

Posted:A year ago

#1

Nick Parker Consultant

288 157 0.5
Still a question over definition of SCE division and which side of the divide it falls - media content or core CE hardware silos. For a true definition, SCE software would follow music, TV and movies and console hardware would follow consumer electronics but SCE hardware and software are part of the same games business strategy and should therefore remain under the same management. It's too early yet to get excited about this, Sony just bouncing ideas off independent advisors.

Interview with Kaz here
http://www.deadline.com/2013/05/sony-ceo-board-will-have-through-discussion-about-selling-off-showbiz-units-video/

Edited 1 times. Last edit by Nick Parker on 31st May 2013 10:44am

Posted:A year ago

#2

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Adam, that was word for word my exact thought.

Posted:A year ago

#3

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