Company hires Morgan Stanley and Citigroup to look into a separate entertainment IPO
Sony is working with Morgan Stanley and Citigroup as it considers a possible spin off of its entertainment assets, claim sources.
Bloomberg reports the news was revealed by persons familiar with the plan to sell the entertainment unit, hatched by Daniel Loeb of Third Point LLC.
The idea is that separating the more valuable entertainment business from the struggling electronics division would help boost the company's stock price and cash reserves.
Sony stocks have risen 11 percent since May 13 - a day before Loeb's plan was picked up by the media.
Sony's Kazuo Hirai has spoken earlier of his company's consideration of the matter, and told an audience at the D: All Things Digital conference today that “It’s something that needs to be discussed at the board level and discussed thoroughly.”
The talk of a company split follows nine straight years of losses in its TV business and a tough market for smartphones and laptops being dominated by rivals Samsung and Apple.