Sony to Spin Off Audio\Video Unit, Exit TVs and Phone Business

File photo of Sony Corp's Chief Executive Officer Hirai attends a news conference at the company's headquarters in TokyoOver the past day or so Sony has announced the next steps it plans to take in pursuit of an apparent goal of no longer being an electronics company. Sony CEO Kazuo Hirai  spoke to the press and revealed that Sony was thinking about parting with its smartphone and TV units, and spinning off other divisions into wholly owned subs.

From Reuters:

Asked about the TV and mobile phone units, Hirai said he would not "rule out considering an exit strategy", Sony's clearest statement to date about the possibility of selling or finding partners for these struggling units.

Sony is in the midst of a restructuring that has so far seen it sell off its personal computer division and spin off the TV business. It has also axed thousands of jobs.

Sony would use the saved funding to instead invest in its entertainment unit as well as its camera sensors and PlayStation units. Sony has been having particularly good luck with the last; the PS4 outsold the rival Xbox one for much of 2014.

In related news, the WSJ reports that Sony is also considering spinning off a couple of its divisions:

The Japanese electronics and entertainment company said Wednesday that it would spin off its video and sound-segment businesses into a separate wholly owned subsidiary, following a similar move last year for its long-troubled television business. The goal is to get them more focused on profits while the Sony parent looks for growth in businesses such as movies, music, videogames and image sensors, said Mr. Hirai.

Given that Sony has either sold previously spun off divisions (see Vaio computers) or is talking about selling units it has spun off, one has to wonder just how long Sony will hold on to the audio and video subsidiaries before selling them.

I'm not worried; Sony clearly has a winner in smart glasses. They announced yesterday that they'll be shipping a new unit to developers next month, and I am sure that it will be remembered as the turnaround point in Sony's revival.

Reuters, WSJ

About Nate Hoffelder (11594 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader:"I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

1 Comment on Sony to Spin Off Audio\Video Unit, Exit TVs and Phone Business

  1. At the beginning of February, Sony sold off Sony Online Entertainment the part of Sony that created the Everquest games to a New York Investment group.

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