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.