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Sony in talks with Morgan Stanley, Citigroup on Electronics and Entertainment split – report

Thursday, 30th May 2013 18:44 GMT By Stephany Nunneley

Sony is reportedly in talks with Morgan Stanley and Citigroup regarding splitting its Entertainment and Electronics divisions.

According to the report on Bloomberg, the talks center around the previously reported split suggested by Third Point LLC boss Daniel Loeb. Sources close to the financial site state the talks between Sony, Citigroup, and Morgan Stanley revolve around a proposal for a sale of the Entertainment unit.

Earlier this month, Loeb delivered a letter to Sony CEO Kaz Hirai calling for a “partial spin-off” so the divisions would stop “obscuring the other’s true worth.” He suggested the firm sell 15-20% of Sony Entertainment to shareholders which would allow the firm to funding to help its Electronics division.

Last week, a separate report on Bloomberg claimed the board of directors had started discussing the idea, with Sony CEO Kaz Hirai reportedly saying the board would “come to a decision that represents Sony’s stance.”

A Sony representative clarified matters at the time by stating that it welcomes investments and dialogue with shareholders, but that Sony Entertainment wasn’t on the market.

Today, a Sony spokesperson Shiro Kambe declined to comment, as did representatives for Morgan Stanley and Citigroup.

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15 Comments

  1. tezzer1985

    All I want to know, which nobody in the game press knows, is how will this effect the gaming section other wise known as Playstation…it’s all good copying and pasting this news, which all gaming sites are doing without adding contexts to the story.

    #1 1 year ago
  2. G1GAHURTZ

    They should sell the electronics division to Microsoft.

    #2 1 year ago
  3. Da Man

    Sell software dept to Nintendo and hardware to MS.

    #3 1 year ago
  4. Irani

    #4 1 year ago
  5. Djoenz

    http://www.sony.com/SCA/who-we-are/our-businesses.shtml

    Bad news. Their tv’s arent selling like they used to etc.

    #5 1 year ago
  6. taternuggets

    Ok…. Sony keeps selling it’s buildings and now “He suggested the firm sell 15-20% of Sony Entertainment to shareholders”

    Everyone can keep saying these are good things and there is “nothing to see here” but it all feels rather disconcerting to me.

    #6 1 year ago
  7. Bill_E_Talent

    @3 Just imagine… the power of Teh Cell combined with the infinite power of Teh Cloud. Endless possibilities.

    #7 1 year ago
  8. nollie4545

    Sony are screwed. Their position as an electronics giant is being eroded, by people like Samsung. I bet within 15 years it will be the Samsung Playstation.

    #8 1 year ago
  9. Mike W

    @8

    That’ll be cool actually.

    @1

    I have to agree with you on this, no offense to Steph, but most game journalist have no idea whether this transaction would benefit or hurt Sony, nor do they care. It’s great way to gain traffic, to get us to argue over something we have no idea about.

    And us as gamers are so simple minded at times (if not all the time) that when we see something that has the slightest negative tone towards anyone of these manufacturers. We’re so quick to post this company is doom.

    #9 1 year ago
  10. Irani

    Sony get away , Do Not Eat People Money With Rubbish Exclusives

    #10 1 year ago
  11. Gheritt White

    I <3 Steph.

    #11 1 year ago
  12. Christopher Jack

    Seems like such a move would severely cripple any current and future efforts made at merging products and services which I think they’ve done pretty poorly at so far.

    #12 1 year ago
  13. Yoshi

    Wait what, so now they’re selling it? Dear god Sony, if you do this you’re retarded.

    #13 1 year ago
  14. beast313

    This is just the Board of Sony doing its due diligence. A shareholder voiced away to increase their worth. They said they would look into it. A IPO offering isn’t a sale off or liquidation.

    #14 1 year ago
  15. Hirmetrium

    Isn’t this going to just kill the electronics side, which is currently far too weak to survive on its own? I wouldn’t want shares in that company.

    #15 1 year ago

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