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Sony board discussing whether to split Entertainment and Electronics divisions

Wednesday, 22nd May 2013 22:28 GMT By Stephany Nunneley

Sony is discussing whether to split its entertainment business, which houses PlayStation, from its electronics division – a possibility which saw stock prices rise yesterday.

Last week, the firm’s largest investor called for a division between Sony Entertainment and Sony Electronics via a hand delivered letter written by Daniel Loeb, CEO of Third Point, LLC, which controls over $1.1 billion in shares.

A report on Bloomberg today states the board of directors has started discussing the idea, with Sony CEO Kaz Hirai stating the board will “come to a decision that represents Sony’s stance.”

Since the proposal was made, Sony shares went up 17% to $22.15 since the Bloomberg report was posted, and as of NASDAQ closing, SNE shares stand at $22.66, up 2.3% after hours.

Thanks, GI International.

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10 Comments

  1. KineticCalvaria

    Well if it helps Sony, I think you should.

    #1 1 year ago
  2. melonbuster1

    Sony games division doesn’t want that… because now they can’t hide.. say bye to vita. .. say bye to the ps4 when it doesn’t break even after seven months. .. Sony= the new Nintendo. .. -the top ip’s lol

    #2 1 year ago
  3. ManuOtaku

    You know what is funny….. sony is spliting the TV from the games, and microsoft is mixing the Tv with the games ;)

    #3 1 year ago
  4. Hirmetrium

    @3: LOL, awesome observation.

    Honestly, who does this benefit? I could of sworn the Electronics side has huge problems with sales, and without the positive buzz from the Entertainment side, won’t this cause problems?

    It will of course, be great for focusing their business… but what will be lost by the split?

    #4 1 year ago
  5. sagtlthl

    @2
    Why don’t you shut up and start watching TV using XB1

    #5 1 year ago
  6. Yoshi

    @4 I’m guessing by splitting them apart they can then break down what works and what doesn’t. So in some respect it could work out well but then in another not.

    #6 1 year ago
  7. Mike W

    This doesn’t sound like a good idea at all. The guy basically is telling Kaz we want to keep the side of Sony that is profitable (Movies, Music, etc.) and slowing get rid of the side (TVs, Vita, Cameras, etc) that’s dragging the company down.

    Hopefully the PS4 comes out before they make a decision.

    #7 1 year ago
  8. sg1974

    Proposal to asset strip Sony, not help it. Loeb just wants as much out of the company as he can get for his own corporate bank account.

    Sony would be mad to sell divest their highly-successful movie and music businesses.

    #8 1 year ago
  9. Mike W

    @8

    Yea that’s exactly what it sounds like…..oh well greed is a mofo…

    #9 1 year ago
  10. Mike W

    @8

    She basically summed in it up pretty nicely.

    http://www.bloomberg.com/news/2013-05-21/sony-jumps-on-report-company-weighs-entertainment-spinoff.html

    #10 1 year ago

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