Sony to make case for finance arm spin-off in latest corporate transformation
Sony
will on Thursday lay out the growth strategy for its financial arm set for a spin-off that has been welcomed by investors as marking the latest chapter in the company's transformation.
The Japanese conglomerate, once best known for household electronics, has received plaudits for shifting its focus to entertainment, which totals more than 60% of sales.
The financial spin-off reflects the tangled path Sony has taken, coming just four years after it took full control of the business in a $3.7 billion deal.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
default
, selected
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Buy Brass Idols - Handmade Brass Statues for Home & Gifting
Luxeartisanship
Buy Now
Undo
Sony executives will address the spin-off and the financial unit's growth strategy at an investor day on Thursday.
The company plans to distribute just over 80% of its shares in
Sony Financial Group
, which includes banking and insurance, to shareholders through dividends in kind.
Live Events
It is the first partial spin-off in Japan taking advantage of a 2023 tax change and the first direct listing - set for September 29 - in more than two decades.
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
In a direct listing a company lists on the stock market without a traditional initial public offering.
The spin-off will separate the balance sheets of the non-financial businesses, which seek capital and asset efficiency, and the financial business, which expands by accumulating capital, helping investors understand their aims, Sony said in response to questions from Reuters.
Compared with an IPO, the spin-off will allow a large-scale separation in a relatively short time with low risk, Sony said.
"The partial spin-off has finally become tax-free, aligning with Western practices and giving an option for large Japanese companies... to shrink their conglomerate discount," said Hideki Somemiya, chief financial officer of materials maker Resonac, which aims to spin off its petrochemicals business in two years.
Sony will retain a stake of just under 20% with the financial business licensing its brand.
That's entertainment
The Japanese company aims to expand its presence in entertainment, spanning from games to movies and music, and maintain its position as the leading manufacturer of image sensors, a type of semiconductor, for smartphones.
"It is necessary to invest in the manufacturing process," Sony CEO Hiroki Totoki said of its chips business this month.
"Whether we do this 100% by ourselves, bring in investment partners or adopt a fab-light type of strategy, there are a number of options," he said.
In addition to manufacturing image sensors, Sony has partnered with Taiwan Semiconductor Co Ltd on the contract chipmaker's Japan venture.
"Outsourcing some production to TSMC would be the most natural choice to bring down the cost burden and improve efficiency," said David Dai, an analyst at Bernstein.
Sony said this month it sees flat operating profit this financial year after factoring in a 100 billion yen ($701.16 million) hit from U.S. President
Donald Trump
's trade war.
The conglomerate, which booked record operating cashflow last year, has allocated 1.7 trillion yen to capital investments and 1.8 trillion yen to strategic investments in the three years to March 2027.
Sony is widely seen as looking to do deals to extend its access to intellectual property to fuel its entertainment business, with Japan one focus.
It bought a stake in Kadokawa after considering an acquisition of the media powerhouse and also considered bidding for Paramount Global last year, Reuters has reported.
Sony is a rising force in anime with planning company Aniplex, which is under its Japan music arm, and the Crunchyroll streaming service, which is part of the pictures segment.
"It is still early days for us and the opportunity is massive, both because of the current size of the market and... the audience continues to grow," Crunchyroll CEO Rahul Purini said.
While growing rapidly, anime is yet to rival the scale of Sony's games, movies and music businesses, and the company does not break it out at earnings.
"It's not only profitable, it's lucrative," said Bernstein's Dai, who estimates anime will contribute 35% to 40% of the pictures business's profit in two to three years.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
31 minutes ago
- Time of India
How to fix matchmaking error #1 on Fortnite
Image via Epic Games Fortnite players across the globe have reported a recurring issue halting their online gameplay, Matchmaking Error #1. While the message 'Weird. We couldn't connect to the match' may sound vague, the problem usually stems from a handful of causes, and the good news is that most are fixable at home. Here's a breakdown of what causes the error and how you can resolve it. What causes matchmaking error #1? Matchmaking Error #1 typically occurs when Fortnite's servers are undergoing maintenance or if there's a network issue on the player's end. Corrupt game files, server-specific downtime, or device-level issues - especially on consoles and mobiles, can also lead to this error. The message itself offers little clarity, often leaving players confused. But there are several effective methods to fix it. Step-by-step fixes to try 1. Check Fortnite's server status The first step is to check if Fortnite's servers are operational. Head to or visit the official Fortnite Status account on X (formerly Twitter). If the servers are down, it's best to wait until Epic resolves the issue. 2. Change your matchmaking region Sometimes, regional servers may be overloaded or temporarily offline. To switch: Go to Settings > Game Tab Select a different Matchmaking Region Apply changes and try joining a match Note: Switching regions may increase your ping, so choose one that's geographically close. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now Undo 3. Restart devices and network Turn off your Wi-Fi router, restart your PC or console, and relaunch Fortnite. A fresh boot often clears minor network or system conflicts. 4. Verify game files PC players can verify their game files using the Epic Games Launcher: Click the three dots next to Fortnite Go to Manage > Verify This checks for corrupted or missing files and replaces them automatically. 5. Try public DNS settings Changing your DNS to Google's Public DNS (8.8.8.8 and 8.8.4.4) can also help with connectivity issues. The process varies by platform but generally improves network stability. 6. Reinstall the game (If needed) If all else fails, uninstalling and reinstalling Fortnite might resolve the issue, especially if a recent update corrupted the local files. Matchmaking Error #1 can be frustrating, but most issues can be fixed quickly by checking server status, switching regions, or restarting your network and game. If the problem persists, submitting a detailed bug report to Epic Games is the best way forward. Keeping an eye on Fortnite's official updates during major patches can also help, as these errors often pop up during server maintenance. With a few simple steps and a bit of patience, you'll likely be back in the game in no time.
Time of India
35 minutes ago
- Time of India
Golden Visa in Dubai: Can new investors qualify instantly with Dh2 million property investment?
Image generated by AI for illustrative and creative purpsoses only Foreign investors looking to relocate to Dubai can secure the UAE's 10-year Golden Visa by investing in property worth at least Dh2 million, according to legal expert Ashish Mehta, founder and Managing Partner of Ashish Mehta & Associates. Mehta, who is licensed to practise law in Dubai, the UK, and India, shared the legal pathway for new businessmen seeking long-term residency in the UAE in a piece published by Khaleej Times. The Golden Visa is a long-term residence permit granted to eligible foreigners and their families, allowing them to live, work, and invest in the UAE without a local sponsor. It is regulated under Article 8 of the annex attached to Cabinet Resolution No. 65 of 2022, which implements Federal Law by Decree No. 29 of 2021 regarding the entry and residency of foreigners. Investment criteria and legal requirements To qualify for a Golden Visa through real estate, an investor must: Own property or properties worth Dh2 million or more, either solely or jointly. Ownership can include mortgaged properties, provided the loan is from a local bank approved by the competent local authority. Purchase off-plan property valued at a minimum of Dh2 million from local developers authorised by the competent local authority. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm Undo Maintain comprehensive health insurance for themselves and their family members throughout the visa's validity or as per requirements set by authorities. According to the law: 'The investor shall own one or more real estate property with a total value of not less than Dh2,000,000... It may be a loan, on condition that the loan is from one of the local banks determined by the competent local authority.' And for off-plan investments: 'The purchase is made from local companies approved by the competent local authority.' Steps to Secure the 10-Year Residency Once these conditions are met, the following steps lead to the issuance of the Golden Visa: Purchase and registration of eligible property with the Dubai Land Department (DLD) Issuance of a title deed Visa application through the DLD, GDRFA (General Directorate of Residency and Foreigners Affairs), or approved digital platforms like Dubai REST Completion of medical fitness test and Emirates ID registration Final approval and issuance of a 10-year renewable residence permit The process must be approved by the relevant local authorities. As stated under Article 1 of the annex to Cabinet Resolution No. 65 of 2022: 'The ICA may – after the approval of the competent authorities – issue a long-term residence permit for a period of ten years… allowing them to self-reside without the need for the Guarantor/the Host Party inside the State.' New businessmen can apply immediately after investment In response to a query published in Khaleej Times, Ashish Mehta clarified that a businessman planning to move to Dubai may apply for the Golden Visa immediately upon purchasing qualifying real estate worth at least Dh2 million, provided all requirements are met. He advised contacting either the GDRFA or authorised platforms like the Dubai Land Department to begin the application process. 'Based on the aforementioned provisions of the law, as a businessman intending to move to Dubai, you may be eligible for the UAE Golden Visa upon investing in real estate property with a minimum investment of Dh2 million, subject to the conditions set by the competent local authority,' Mehta stated. The UAE continues to position itself as a global hub for investors and entrepreneurs. The Golden Visa offers not just long-term stability but also the freedom to live and operate in the country independently, making it a compelling incentive for foreign businessmen planning to establish roots in Dubai.
Time of India
37 minutes ago
- Time of India
China says willing to improve communication with countries on rare earth controls
China's commerce ministry said on Saturday that it has approved a certain number of compliant rare earth export applications and will continue to refine its examination and approval process. The ministry also expressed willingness to enhance communication with other countries over export controls, according to a statement on its website, Reuters reported. The announcement comes at a time when Indian automakers are facing worsening shortages of rare earth magnets , critical components for electric vehicles (EVs) and other high-tech industries. According to Bloomberg, Beijing has turned down at least two recent applications for India-bound shipments of rare earth magnets, raising fears of an imminent disruption in Indian automobile production . Industry and government officials told Bloomberg that while shipments to the German and U.S. units of a global firm were cleared, the same request to its Indian arm was rejected. Since April 4—when China began enforcing tighter curbs on exports of seven rare earth elements—supplies to Indian auto parts manufacturers have been stuck at Chinese ports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo These new controls require importers to certify that the magnets will not be used for defense purposes or re-exported to the U.S. The new end-user certification process can take at least 45 days and is now facing a global backlog. As per the Bloomberg report, at least 30 Indian applications endorsed by the Indian government are still awaiting Chinese approval, while over 10 applications from other countries have reportedly been cleared. According to a May 28 presentation by the Society of Indian Automobile Manufacturers (SIAM), no Indian applications have received final approval from China's commerce ministry despite many having secured embassy endorsements. Live Events 'Even if one magnetised part is missing, the vehicle cannot be built,' SIAM warned in the presentation, adding that some Indian firms may consider shifting operations to China if the supply crunch continues. The squeeze has heightened concern among Indian automakers. 'The rare earth situation is a very difficult one,' Bajaj Auto 's Executive Director Rakesh Sharma told analysts. 'Supplies and stocks are getting depleted as we speak, and if there's no relief in shipments, production will be seriously impaired in July.' To address the growing crisis, a delegation of Indian businesses is planning to visit Chinese counterparts this month with help from the Indian Embassy in Beijing. The embassy has reached out to China's commerce ministry, seeking expedited clearance of pending applications. A meeting was recently held at the Indian Prime Minister's Office to discuss options for resolving the impasse. Indian officials have advised manufacturers to explore alternative supply chains and consider local refining capacities—though such solutions are long-term in nature. Meanwhile, the Indian government is also encouraging firms to explore ferrite magnets or magnet-free designs, though these come with compromises in cost and performance. As a result, some companies are considering stop-gap measures such as importing motors or shifting production to fossil-fuel-powered vehicles. With inputs from agencies
