[opendtv] Sony To Spin Off A/V Business | http://www.twice.com
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 18 Feb 2015 18:17:32 -0500
http://www.twice.com/news/financial/sony-spin-av-business/56085
Sony To Spin Off A/V Business
Tokyo -- Sony CEO Kazuo Hirai said Wednesday that the company would spin off
its video and sound segment into a wholly owned subsidiary, similar to last
year's decision to do the same with Sony's struggling TV business.
In addition to the split-off, the company will realign its hardware business
into tiers based on their growth prospects, with a renewed focus on content,
gaming and imaging sensors as the primary revenue generators, as well as
network services, and a lesser concentration on TVs and smartphones.
The goal, Hirai said, is to focus more on profits from its entertainment
businesses such as movies, music and videogames. Hirai said other units could
eventually be spun off as well, though nothing was currently planned.
Hirai expects the subsidiary model to produce leaner, more focused business
units that can adjust more quickly to market conditions and put more autonomy
in the hands of managers.
The move also appears to reverse Hirai’s unification initiative, dubbed Sony
One, which he introduced in 2012 as part of an ambitious comeback strategy.
In the end, he said, Sony wants to grow operating profit to $4.2 billion in
three years, and turn a profit within the TV business this year.
Rather than pursuing sales volume, Sony will focus on growth in profitable
areas such as its image sensor unit, which anticipates greater demand for
better smartphone camera technology and increased use of sensors in
next-generation vehicles.
Hirai told reporters that Sony will “stress profitability, not uniform growth
in scale.”
The spin-offs are expected to be completed by Oct.1, the company said.
Other related posts:
- » [opendtv] Sony To Spin Off A/V Business | http://www.twice.com - Craig Birkmaier
