Sony board discussing whether to split Entertainment and Electronics divisions

By Stephany Nunneley

Sony is discussing whether to split its entertainment business, which houses PlayStation, from its electronics division – a possibility which saw stock prices rise yesterday.

Last week, the firm’s largest investor called for a division between Sony Entertainment and Sony Electronics via a hand delivered letter written by Daniel Loeb, CEO of Third Point, LLC, which controls over $1.1 billion in shares.

A report on Bloomberg today states the board of directors has started discussing the idea, with Sony CEO Kaz Hirai stating the board will “come to a decision that represents Sony’s stance.”

Since the proposal was made, Sony shares went up 17% to $22.15 since the Bloomberg report was posted, and as of NASDAQ closing, SNE shares stand at $22.66, up 2.3% after hours.

Thanks, GI International.

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