Sony is trying very hard to return to profitability and assume a growth footing once again. To achieve this aim the company is working on a comprehensive restructuring strategy which includes spinning off businesses into separate subsidiaries. About a year ago the company spun off its TV business and sold the PC unit and today it is doing something similar for the audio and video business.
The company has confirmed that its audio and video business is being spun off which will now be a wholly owned subsidiary. The subsidiary will have greater independence to conduct its affairs and will be able to focus more on its own profits on the other hand the parent company will focus on its strongest units which include gaming, movies and image sensors.
In a briefing earlier today Sony CEO Kazuo Hirai said that the company will consider the possibility of selling off its smartphone business. Even the TV business could meet the same fate provided that there is someone out there willing to pick these units up.
Sony hopes that these moves will improve its fortunes and will prove to be beneficial in the long run. Investors seem to agree, the company’s stock is trading slightly higher than usual today.
Filed in . Read more about Sony.