Sony (NYSE:SONY) stock is on the move Thursday as the technology and entertainment company considers a spinoff of its financial business.
According to a recent press release, Sony plans to conduct an evaluation of its Financial Services business. It’s doing so with the goal of determining the possibility of spinning the division off into its own public company.
If the assessment is positive, it could result in Sony Financial Group being its own company. However, Sony notes it would still intend to hold a stake in the financial business. It says this would be just under 20%.
As for the timing of the spinoff, that will have to come after the assessment. One thing Sony did note is that the spinoff could take place sometime during the next two or three years, so long as its evaluation goes well.
Comments on the Sony Spinoff
Hiroki Totoki, President, Chief Financial Officer and Chief Operating Officer at Sony, said the following about the spinoff plan:
“Sony’s image sensor and entertainment businesses will need much bigger investment in the future. Meanwhile, you need a strong base for financial services […] That’s why we decided to consider using a virtual spinoff — which allows us to keep Sony’s name on the financial service arm while it gains the ability to raise cash independently.”
SONY stock is up 3.7% as of Thursday morning.
Investors looking for more of the most recent stock market news will want to stick around!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
