Sony Corp., one of the world’s biggest video game companies, said Monday that it will sell its video games, music and movies businesses to a consortium of Asian and Asian-American investors.
The company plans to merge with a subsidiary, Sony Japan Corp., to form Sony Entertainment Entertainment Holdings.
The company said the sale would not affect its operations in Japan or its video content.
Sony shares fell nearly 6% in premarket trading after the announcement.
The deal will create a new entity with the aim of becoming a wholly owned subsidiary of Sony.
The deal is expected to close in the second quarter of 2021.
“Sony Entertainment Holdings has been an integral part of our success and we look forward to continuing to invest in our global video games portfolio,” said Chairman Tom Yager in a statement.
The sale will create Sony Entertainment, which will have $1.1 billion in assets.
The new entity will be headed by Sony Japan CEO Nobuyuki Morimoto and will be led by a director of Sony Asia Pacific.
Sony Japan has been looking for an Asian investor to finance the acquisition.
Sony Entertainment Asia Pacific will be based in Japan, and Sony Japan is based in South Korea.
Sony said in its statement that the Japanese company will work to develop new IP, including a mobile game based on a theme park and movies based on historical figures, in a bid to attract Asian investors to the entertainment company.
Sony’s business has long been one of its strongest in the world.
It has made more than $8 billion in revenues and made more revenue per $1 billion of revenue than Apple Inc. or Google Inc.
Source: WSJ article