Reports are saying that Japanese tech company Sony Corp is in talks to sell its Vaio personal computer business, as this division has been incurring continuous loss for them. This apparent move is also part of their strategy to focus on the more lucrative business of smartphones.
Sources say they are already in talks with investment fund group Japan Industrial Partners to offload the business to them. The estimated cost of the PC division is at 40 billion yen to 50 billion yen ($391 million to $489 million). Sony will still be taking a small stake in the new company to be able to facilitate the transfer, which will see the entity still produce and market the computers under the Vaio name. They are expected to maintain operations in countries where Vaio still has a reputable following but will stop its presence in most regions.
With regards to the more than 1,000 employees in the PC division, most of them will be absorbed by the new company, including the executives, while some will be transferred to Sony’s other divisions. One of the things being negotiated between Sony and the new company is to still keep in operation the site in Nagano Prefecture for research and development and production as well.
This reported sale will probably result in losses for Sony this fiscal year, which will be ending on March 31. This is the first time in two years that they will be having a net loss and it is far off from the company’s projected profit of 30 billion yen. Both the TV and digital camera businesses are suffering huge losses. Earlier this month, they announced they’re looking at cutting more jobs in their failing electronic equipment division, which would affect five plants operating under the Sony EMCS Corp. in Aichi Prefecture, Nagano Prefecture, Shizuoka Prefecture, and Chiba Prefecture.
[ via Nikkei ]