Sony Group, a Japanese multinational conglomerate, is considering selling its semiconductor division, Sony Semiconductor Israel, to focus on the entertainment sector.
Sony Semiconductor Israel and Its Significance
Sony Semiconductor Israel, with approximately $80 million in annual recurring revenue, may be sold for around $300 million. The company is working with investment bankers to organize the sale, although discussions are in the early stages and remain confidential.
Sony's Strategic Changes and Partial Spin-Off
Sony aims to execute a partial spin-off of its financial division, reflecting new strategic shifts within the company. Previously, Sony acquired the Israeli company Altair Semiconductor for $212 million in 2016 and has since focused more on entertainment segments, which account for about 60% of its total profit.
Prospects and Possible Consequences of the Deal
The potential sale of Sony Semiconductor Israel has garnered interest from major players in the sector. The Israeli developer's primary product is cellular chipsets for smart meters, household appliances, and wearables. The spin-off of the financial business further underscores the strategic changes within the company, which may improve investors' understanding of its goals.
As a result, Sony Group continues to adapt to changing market conditions and focuses on entertainment technologies while keeping avenues for diversifying its assets open.
