Skip to main content

Sony reportedly considering breaking off its entertainment division

Sony Entertainment Network
Image used with permission by copyright holder

Sony may split off its profitable entertainment division from the rest of the company and take it public, Bloomberg reports. The possibility grew out of one shareholder’s suggestion, but Sony has now hired Citigroup and Morgan Stanley to assist in formulating an initial public offering for Sony Entertainment, an umbrella that includes its movie, TV, music, and video game businesses.

The shareholder in question is billionaire Daniel Loeb, CEO of Third Point LLC and owner of six percent of Sony. He voiced the suggestion earlier this month in a letter to Sony CEO Kaz Hirai, explaining that a 20-percent sell-off of the company’s entertainment assets as an IPO could help to reinvigorate its struggling electronics business. Despite recent gains, the television division, for instance, has lost two-thirds of it market value in the last five years alone. The audio division isn’t fairing much better either.  

At first the suggestion was taken as just that- a suggestion. Although Loeb is an influential shareholder, his recommendation was unasked for. The fact that Sony is now actively consulting with two major financial groups, however, suggests that the scenario Loeb painted may become a reality. At the very least, Sony is actively investigating the possibility.

Sony, Citigroup and Morgan Stanley all refused to comment on the matter.

Editors' Recommendations

Michael Rougeau
Former Digital Trends Contributor
Mike Rougeau is a journalist and writer who lives in Los Angeles with his girlfriend and two dogs. He specializes in video…
How to gameshare on PS4
Two people play a soccer game on PS4

Remember the days when you could easily trade or borrow games with friends and family? It used to be possible for players to share cartridges or discs to try games with friends before buying them, but with the rise in the popularity of digital games, sharing discs and cartridges isn't as plausible as it used to be.

Read more
Sony’s latest partnership is a big move for PlayStation’s mobile future
A PS5 sits on a table.

Sony Interactive Entertainment (SIE) revealed its next big gaming partnership, and it's with a somewhat unexpected company. The game developer and publisher in question is NCSoft, a Korean company best known for its work on MMO series, namely Guild Wars and Lineage.

According to a press release, the two companies have entered into a partnership that enables them to "collaborate in various global business fields, including mobile." We asked Sony if the phrasing of "various global business fields" also applied to console games, but a representative for the company said it doesn't have anything else to share on that front currently.

Read more
PlayStation Plus is the perfect stocking stuffer for RPG fans this year
Yuffie holding three materia in FF7 Remake Intergrade.

I thought I had my fill of gaming subscription services. PlayStation Plus's price increase turned me off and the offerings of Xbox Game Pass never fit my fancy. While both of these have their positives, I've never been one to just drop so much money every month for a bunch of games I don't really care about. That was until I jumped into my yearly Christmas-time RPG mood and discovered the bounty of classics that's built up on PS Plus.

The First 11 Minutes of Final Fantasy 7 Remake Intergrade Gameplay - 60 FPS Performance Mode

Read more