Kazuo Hirai, chief executive of Japanese consumer electronics company Sony Corp. (SON.L, SNE) at the All Things Digital technology conference said its electronics business is fixable and defended the benefit of being a conglomerate. He highlighted the positive aspect of being a maker of televisions, smartphones, as well as its operations in music, TV and films.
Sony's 6.5 percent shareholder and US hedge fund operator ThirdPoint has recently suggested for a spin off of 15 percent to 20 percent of Sony's music and movie business, in view of the continued weakness of unprofitable electronics business. Responding to the proposal, Hirai said the company would take a serious look at the proposal. CEO pointed out that with proper focus, decision making and execution, electronic business for Sony can make a turn around.
ThirdPoint was of the opinion that the proceeds from the spin off of the entertainment business can be used to reconstruct its money-losing electronics business. Sony's unprofitable electronics business has struggled after making losses in its TV division.
Last week, at its Corporate Strategy Meeting, Sony said it expects to achieve financial targets for fiscal year 2014 announced on April 12. The firm aims returning electronics business to profit in fiscal year ending March 31, 2014, and said it continues to strengthen the overall financial foundations of the Group.
At that time, the company announced its aim to return its TV business to profitability and launch of its next generation platform "PlayStation 4" or PS4 this year-end holiday season.
For comments and feedback: editorial@rttnews.com