Billionaire Daniel Loeb proposed a few weeks ago that Sony split both its entertainment and electronics business and by the looks of things, it may happen.
Bloomberg reports that Sony is working with Morgan Stanley and Citigroup as it considers adopting Loeb's proposal.
Third Point LLC's Loeb acquired more than six percent of Sony and is pushing Chief Executive Officer Kazuo Hirai to sell as much as 20 percent of the entertainment assets in initial public offering.
According to reports, Hirai said that Sony is looking closely at Loeb's proposal though a decision from the board is premature at the moment. The split would help the Tokyo based giant sharpen the focus on its unprofitable electronics businesses who has had nine straight annual losses from making TVs. Sony's film and financial services earnings have helped the company.
"I want to revive the electronics company," Hirai said.
Hirai said that the electronics business is improving thanks to the Xperia Z smartphone and upcoming Playstation 4 console that will focus on games more this time around.
"The most important thing we need to make sure we do at least initially is that we all agree and understand that the PS4 is a great video game console that appeals to video gamers," Hirai told a reporter.
Hirai stressed that the plan is only being considered.
"It's only a start," Hirai said. "It's important that the board will discuss this and come to a decision that represents Sony's stance."
Sony's shares rose as much as seven percent yesterday and as much as 5.8 percent today in Tokyo.