ID :
357754
Thu, 02/19/2015 - 06:12
Auther :

Sony to Spin off All Biz Divisions into Separate Companies

Tokyo, Feb. 18 (Jiji Press)--Sony Corp. <6758> unveiled Wednesday a three-year business plan from the year starting this April, featuring spin-offs of all remaining business divisions into separate companies to boost the competitiveness of each unit. Specifically, Sony will spin off its audio and video equipment businesses, the operation of its signature Walkman portable music players, into a single company on Oct. 1. It also plans to make its electronics parts division and the camera division into separate companies. Sony President and Chief Executive Officer Kazuo Hirai told a press conference that Sony will reduce the management control of its headquarters over business units to the minimum necessary and focus on stepping up corporate governance. The struggling consumer electronics maker has already spun off five operations undertaken by subsidies, such as video games and smartphones, as well as its own television division. With the television unit now seen moving into the black, Sony decided to extend its spin-off efforts. Under the latest plan, the chiefs of the separate companies will be given broad responsibilities and authority, including decisions on mergers, acquisitions and possible corporate sales. The midterm plan also identifies growth drivers, calling for active investments in the segments of electronic devices, games, movies and music. Sony also seeks stable revenue and profits from the envisaged camera and audio-video equipment subsidies while aiming to turn around the television and smartphone businesses. Sony targets a group operating profit of at least 500 billion yen in fiscal 2017, up from an estimated 20 billion yen in fiscal 2014. END

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