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Sony to consider partial sale of entertainment business

2013-05-22 12:12:00| Telecompaper Headlines

(Telecompaper) Sony has outlined its strategy for the current fiscal year to March 2014. The company said it aims to accelerate execution at its core businesses mobile, imaging and gaming, return its TV business to the black and drive new growth initiatives in emerging markets and its medical and security activities. In the mobile market, Sony said it wants to speed up the development and launch of new products, building on its recent Xperia Z flagship smartphone. The target for the mobile business, which includes smartphones and tablets, is to reach sales of JPY 1.5 trillion and an operating margin of 4 percent in the year to March 2015. In its PC business, Sony will focus on margins over volumes, with the aim of returning the business to profit in the current fiscal year. For the gaming activities, Sony plans a new PlayStation in time for the year-end holidays. It also wants to integrate the gaming console more with other devices, using cloud technologies acquired in the takeover of Gaikai last year, and by expanding PlayStation games and services to smartphones. The group reiterated its full-year targets for sales of JPY 8.5 trillion and an operating margin of over 5 percent, while the electronics business should deliver a margin of 5 percent on sales of JPY 6 trillion. At a press conference on the strategy update, CEO Kazuo Hirai confirmed the board is considering a proposal from shareholders to spin off and list its entertainment business. Hedge fund investor Daniel Loed of Third Point recently proposed the company sell 15-20 percent of the entertainment business, raising cash to invest in the electronics business.

Tags: business sale entertainment sony

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