It’s no secret that Sony isn’t doing so well financially and in a recent board meeting a proposal was put forward to split off the powerful entertainment division.
The idea is quite simple really; take your huge and bloated division, spin it off into a new company and then trim the fat to increase profits. Or in other words: be American and squeeze it for everything it has before discarding it like yesterdays toilet paper.
However in a country as steadfast as Japan the idea of splitting companies to maximise profits doesn’t sit very well and I personally am quite glad they decided against the idea. However I do think Sony needs to re-look at their electronics division and pay special attention to stop it destroying their bottom line.
Unfortunately the world’s investors didn’t take kindly to the decision and Sony’s share price has plummeted after hours trading dropping 4.5%
But it’s not all doom and gloom, as the stock has increased 100% so far this year alone and Sony may well be on the path to revival.
Last Updated: August 7, 2013