Sony plans to set up a new group next year to acquire all shares of Sony financial holding

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 Sony plans to set up a new group next year to acquire all shares of Sony financial holding


On May 19, Sony held its corporate strategy meeting for the financial year 2020 as of March 31, 2021. Kenichiro Yoshida, the companys president and chief executive officer, outlined specific measures to strengthen the groups management and set out the development direction of each business, while the human element is linked to each business.

Sony decided to set up Sony Group Company from April 1, 2021, so as to replace the current headquarters function of Sony, and set up Sony electronics company, inherit the name of Sony Company and operate electronic business.

More importantly, Sony is making an offer for shares and other equity securities of Sony Financial Holding Co., Ltd. (hereinafter referred to as Sony financial holding), so as to make Sony financial holding a wholly-owned subsidiary of Sony. Currently, Sony owns about 65% of Sony financial holdings. Sony Financial Holdings has been listed on the Tokyo Stock Exchange for nearly 13 years.

Contrary to the outside worlds familiarity with Sonys electronic products, Sonys financial business has been little known, but it has contributed a stable source of profits to Sony, which is less affected by market fluctuations. Sony financial controls provides life insurance, auto insurance, disaster insurance, banking, nursing and venture capital services.

Sony Financial Holdings announced that the purchase price was 2600 yen for us shares, 26% higher than Mondays closing price. Trading was suspended after the companys share price rose 17% to 2412 yen after news reports. On May 20, as of the press release, the companys share price rose 7.67% after opening.

In addition, Sony also disclosed the development direction of various businesses. Among them, PlayStation 5 host is expected to be released in the festival season of 2020, which will provide a more immersive host experience; identify the artist broker as a business area worthy of expansion; invest in the development of its own IP, pay close attention to the impact of the spread of the new crown on the future video content consumption, and cooperate with supply chain partners including film screening to restore content distribution that s ok.

For the animation business not disclosed separately, Sony said it plans to provide Japanese animation content to audiences around the world through the animation DTC service, and will strengthen cooperation with Chinese companies. In April 2020, Sony invested about 400 million US dollars in BiliBili, and the two sides will also cooperate in animation, mobile games and other fields.

For the two businesses of electronic products and image, Sony will be committed to meeting the growing demand for remote solutions (including people to people, people to things connection); take the initiative to strengthen architecture management to cope with the changes brought by the impact of the epidemic on product demand and supply chain; mobile device sensing and vehicle borne sensing solutions are expected to bring long-term growth; plan Using stacked CMOS image sensor technology to provide AI sensor solutions.

In the past, investors valuation of Sony as a whole was lower than the integration of various parts, and they worried about whether the management could normally operate such a diversified business. Third point, a New York fund that invested $1.5 billion in Sony, has called on Sony to divest its image sensor business and sell its stake in Sony financial holdings.

But Mr Yoshida believes that diversification is an advantage that can help the company grow. The new acquisition can help Sony take advantage of its technology and promote new synergies. Undeniably, many technology giants have entered the financial industry, including apple, Google, Tencent and Alibaba.

However, Sony did sell underperforming or peripheral businesses in the past decade, including the battery business sold to Murata in 2017 and all of its Olympus shares in 2019, with a sales volume of about 80 billion yen. But obviously, image sensor business is Sonys trump card business at present, which not only offsets the decline of game and electronic products business, but also becomes the highlight of performance in fy19f under the strong demand of 5g, with revenue increasing by 22% year-on-year.

Zhao Zexiao, editor of Liangchen, reporter of Beijing News, to Wang Xin

Source: responsible editor of Beijing News: Wang Fengzhi_ NT2541