Sony Considering Splitting Its Entertainment Division
According to a new report, Sony may be in the process of splitting its entertainment division, which currently holds TV, movie, music, games all under one roof, and taking the profitable part public.
The decision was initially suggested by shareholder Daniel Loeb to Sony CEO Kaz Hirai in a letter earlier this month. Loeb who is also CEO of Third Point LLC and owner of six percent of Sony, explained that selling off 20 percent of the company’s entertainment assets as an IPO could help strengthen its struggling electronics business.
Sony’s television brand has lost two-thirds of its market value in the last five years and the audio division is likewise spiraling downhill as well.
Bloomberg reports that Sony has now hired Citigroup and Morgan Stanley to help investigate the possibility of the slice and dice.
Sony, Citigroup and Morgan Stanley all refused to comment on the matter.
Source: Digital Trends