(Bloomberg) — Sony Group Corp. is considering a spin-off and separate listing for its financial unit within two to three years, potentially reversing a $3.7 billion acquisition deal that closed in 2020.
Most read from Bloomberg
-
Here’s how much wealth you need to join the richest 1% worldwide
-
JPMorgan Asset says markets are right to bet on US rate cuts
The stock rose as much as 7.3% in Tokyo. The entertainment conglomerate will consider such a plan for the rest of this fiscal year before making a decision, the company said in presentation materials ahead of a briefing. The plan under consideration could include Sony retaining 20% of the unit in the event of a spin-off and listing on a Japanese stock exchange, according to the documents.
Sony, a major game publisher, electronics maker and Hollywood entertainment producer, had diversified into banking since 2001. The Sony Financial unit was founded in 2004 and would at one point provide the bulk of the conglomerate’s operating profit. But in recent years, the Japanese company has begun to focus on its core entertainment business.
The potential spin-off coincides with growing challenges in Sony’s key businesses. Last month it offered conservative earnings guidance for the current fiscal year and warned of the impact of the global consumer spending slump on its electronics and entertainment businesses.
This week it revealed plans to buy back up to 2.03% of its shares for a whopping $1.5 billion over the next 12 months, which would help spark a stock rally.
Most read from Bloomberg Businessweek
-
Sweetgreen is testing robots to make faster, more efficient Sad Desk salads
-
Eric Adams is starving New York City’s Universal Pre-K program
-
Recession calls keep getting pushed back, giving hope to soft landing believers
©2023 Bloomberg LP
