Sony board discussing whether to split Entertainment and Electronics divisions

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

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.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission. For more information, go here.

Comments

Headlines

Daniel Loeb

Kaz Hira

Sony Electronics

  • Sony plans to close all but 11 of its stores in the US

    Sony has announced it will close 20 of its Sony Electronics stores across North America. Of the 5,000 employees being laid-off worldwide, it’s reported that 1,000 of those were employed at the stores being shuttered. Sony said 11 store locations will remain open, and the other closures were needed “to maintain its competitiveness in an […]

  • Sony is looking for 'at least one' new board director - report

    Sony is looking for “at least one” new board director according to a report from The New York Post, the firm is apparently approaching several of it’s US-based media executives for the role.