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Report: Sony Brings in Experts to Consider PlayStation Division Spin-Off

May 31, 2013 by Stephen Daly

Citigroup and Morgan Stanley hired to consider breaking up Sony.

Sony is actively considering splitting its electronics and entertainment divisions according to reports by Bloomberg which will see Sony's various media groups, including PlayStation, become a seperate company from the TV and camera making electronics division. 

The firm is believed to be in the process of Citigroup and Morgan Stanley to consider the options for the split and how it might come about.

Daniel Loeb, one of Sony's biggest investors, called for the split two weeks in discussions with the company's CEO, Kaz Hirai. Loeb believes that the true worth of the two branches of Sony would be more clearly apparent should they separate. Last Tuesday the move was first raised at board level Japan's Nikkei newspaper reported leading to a 9% surge in the company's share price.  

The spike was initally believed to be a result of Microsoft's unveiling of the Xbox One as the two events coincided but the board level discussions later emerged. 

While the PlayStation branch is under the purview of the entertainment branch it's likely that the entertainment division has contributed to the creation of PlayStation consoles, including PS4, and a split may affect future systems. It's also unclear whether Hirai would take responsibility for the new entertainment group in the event of a split; given his time at Sony Computer Entertainment it seems likely. 

It's possible that as a result of the separation the Sony name may not be carried forward by both divisions. 

Sony, Citigroup and Morgan Stanley all declined to comment on the report.

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