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Sony shareholders’ meeting to discuss splitting electronics and entertainment divisions

Wednesday, 19th June 2013 16:15 GMT By Stephany Nunneley

Sony will hold a meeting tomorrow, in which it will discuss a proposed split between its entertainment and electronics divisions, according to a Nikkei report.

The report also states that Sony boss Kaz Hirai wants to keep the divisions unified going forward, instead of splitting as suggested by Third Point LLC boss Daniel Loeb.

Much noise regarding a proposed split since May, when Loeb hand delivered a letter to Hirai.

In his letter to Hirai, Loeb proposed the firm sell 15-20% of Sony Entertainment to shareholders which would allow the firm to funding to help its electronics division.

Last we hear, Sony was reportedly in talks with Morgan Stanley and Citigroup regarding splitting  the entertainment and electronics divisions, and even the possible sale of the entertainment unit.

Another report stated 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.

So come tomorrow, June 20, it sounds as though a decision will be made either way.

Thanks, MCV.

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7 Comments

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  1. DGOJG

    Have I come back from the future or something? I thought this was already dealt with and decided that they weren’t going to split?

    #1 10 months ago
  2. MCTJim

    which is why the company is in financial straights.

    #2 10 months ago
  3. sg1974

    @2 The company is in financial straits because it spent a decade making lots of hardware people didn’t want and failed to respond quickly enough to changing technologies. This is nothing more than a ploy by Loeb to extract as much money as he can from the company. Qui bono? as they said in Rome.

    It would be insane to sell off the very successful content businesses which make up a huge chunk of Hollywood and a massive chunk of the music production and publishing businesses – and are increasingly provided on Sony hardware through things like Music Unlimited etc.

    #3 10 months ago
  4. Hirmetrium

    Risking it all on a video game division? Seems very dangerous. I still view SONY as a top brand, and I haven’t regretted a Sony electronic purchase for a long time. This could likely leave them out in the cold, and if their entertainment brand falters (like it did with the PS3) it could sound the death knell.

    #4 10 months ago
  5. MCTJim

    For some reason this sounds very familiar : failed to respond quickly enough to changing technologies.

    But when a certain company does..they get blasted….double standard I guess.

    If Sony does not do something like restructure their entire company worldwide, I fear they wont be around in certain areas.

    #5 10 months ago
  6. sg1974

    What double standard? Sony got roundly slagged off for most of the past decade, and deservedly so for crap like Rolly, sticking with MD when iPods were selling like hot cakes, failing to make phones anybody wanted, etc etc.

    #6 10 months ago
  7. laughing-gravy

    Forbes have a different view on this. Basically it doesn’t look likely.

    #7 10 months ago