Aquamarine
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Update:
It's confirmed. Sony will sell its entire PC business to buyout firm Japan Industrial Partners Inc. The final deal set to be done by the end of March 2014.
http://www.engadget.com/2014/02/06/sony-sells-vaio/
http://www.bloomberg.com/news/2014-...l-loss-as-hirai-turnaround-stalls-on-tvs.html
Direct evidence from Earnings Release:
http://www.sony.net/SonyInfo/IR/financial/fr/13q3_sony.pdf
Original Story:
Source: Seeking Alpha
http://asia.nikkei.com/Business/Deals/Sony-looking-to-sell-PC-business-to-investment-fund
It's confirmed. Sony will sell its entire PC business to buyout firm Japan Industrial Partners Inc. The final deal set to be done by the end of March 2014.
Sony said it was "addressing various options" as recently as yesterday when it came to its VAIO PC and laptop arm, and while announcing its financial results for Q3 2013, it's apparently come to a decision. Amid reforming its TV arm (and splitting it into a stand-alone entity), it's going to sell its PC business and VAIO brand to Japan Industrial Partners (JIP), with the final deal set to be done by the end of March 2014. The company has reported a drop in demand for its PCs in prior financial statements, and (barring the VAIO Flip 11A), Sony didn't have much to show from its VAIO range at this year's CES.
Sony is now no longer designing and developing PC products, while manufacturing and sales will wrap up after the company's final VAIO range goes on sale globally. The company explains that it decided to focus on mobile products (smartphones and tablets), meaning that it had to make big decisions with less successful parts of the business.
Bloomberg is reporting that Sony will cut 5,000 jobs worldwide by the end of the 2014 fiscal year, while the new PC company has stated that it will hire around 250 to 300 Sony employees, encompassing design, development manufacturing and sales, and will be based in Nagano -- where Sony's current VAIO HQ resides. The company is promising to fulfill all its aftercare warranties. Sony is signed up to invest 5 percent of the new company's capital to support its launch and smooth over the transition. According to Sony's predictions, it reckons the changes will ensure the TV business returns to profitability within the financial year of 2014.
http://www.engadget.com/2014/02/06/sony-sells-vaio/
http://www.bloomberg.com/news/2014-...l-loss-as-hirai-turnaround-stalls-on-tvs.html
Direct evidence from Earnings Release:
http://www.sony.net/SonyInfo/IR/financial/fr/13q3_sony.pdf
Original Story:
- The Nikkei reports Sony (SNE +5.3%) is in talks to sell its Vaio PC unit, and is looking to receive ¥40B-¥50B ($394M-$492M).
- The report follows one over the weekend stating Lenovo (LNVGY), which last month struck deals to buy Motorola Mobility and IBM's x86 server unit, is in talks to acquire Sony's PC ops. Sony called that particular report inaccurate, but admitted it's exploring options for the business.
- Sony shares have shot higher on the Nikkei's report. Investors like the idea of unloading a loss-generating unit that has struggled to deal with declining PC sales and tough competition from Lenovo, H-P, and others. The company's FQ3 report is due on Thursday morning.
- Thanks to both the Sony report and a massive equity selloff, Lenovo shares are down 16% in Hong Kong over the last two days.
- SNE price: $16.06, Up 0.81 (5.31%)
Source: Seeking Alpha
TOKYO -- Sony is in talks to unload its sluggish personal computer operations to investment fund Japan Industrial Partners as it tries to shift focus to smartphones, The Nikkei learned Tuesday.
Under the plan, the fund will establish a new company to which Sony will sell its entire PC business. The sale price is estimated at 40 billion yen to 50 billion yen ($391 million to $489 million).
The new entity would continue to sell PCs under the Vaio brand and also handle after-sales service. To facilitate the transfer, Sony will take only a small stake in the firm, which will try to solidify its business base at home. While the company may maintain operations in overseas markets where the Vaio brand is well-known, it will withdraw from most countries and regions.
Sony's PC business has a staff of roughly 1,000. Many of them, including executives, will be taken on by the new firm, but some others will be transferred to other departments within Sony. The parties are discussing having Sony's PC site in Nagano Prefecture continue handling R&D and production under the new company.
The sale of the PC business will result in disposal losses, pushing Sony into a net loss for the first time in two years for the year ending March 31 -- a reversal from the projected 30 billion yen in profit. With TV and digital camera operations languishing, its electronics business is performing below expectations.
The Japanese consumer electronics titan made a full entry into information technology equipment by launching the Vaio brand of PCs back in 1996. Its annual PC shipments peaked at 8.7 million units but are now projected to fall to 5.8 million units this fiscal year. Sony was the ninth-ranked PC maker in the world with a 1.9% share of all PCs shipped during the January-September period of 2013, according to U.S. research firm IDC. Although Sony does not disclose earnings for the PC business, the segment is believed to be bleeding red ink.
http://asia.nikkei.com/Business/Deals/Sony-looking-to-sell-PC-business-to-investment-fund