Just over a year ago, Sony announced it would be spinning its TV and PC businesses as it looked to restructure itself and mitigate losses. Today, the company is shedding some more weight: its audio and video business will become a wholly owned subsidiary.
By separating the company into different units, Sony believes each subsidiary can focus on its own profits, while the parent company grows its strongest sections: movies, music, video games and image sensors.
Sony believes the movie could help the company achieve an operating profit of $4.2 billion in three years, countering years of losses. CEO Kaz Hirai suggested the company is contemplating separating other units, as well as possibly selling its TV or smartphone businesses to another company.
Hirai introduced a ‘One Sony‘ plan in 2012 in an attempt to reinvigorate the company’s business. That seems ironic in retrospect, given how much of its business the company has spun off since then.
Still, Hirai says he isn’t giving up on the One Sony approach. Though the company may be restructuring into different parts for profitability purposes, Hirai hopes the new hierarchical setup will continue to operate as coherent Sony group.