TOKYO – Sony Corp. plans to make its financial services unit a wholly owned subsidiary to ensure stability as it rides out the hardships brought on by the coronavirus pandemic.
“We will be able to carry out more flexible management,” Kenichiro Yoshida, chief executive of the Japanese entertainment and electronics company, told reporters in a livestream news conference Tuesday.
Tokyo-based Sony is making a tender offer for the shares of Sony Financial Holdings Inc., of which it now owns about 65%.
Sony said the company name will become Sony Group Corp., upon shareholders' approval later this year, effective April 1, 2021. Its electronics segment will take on the Sony Corp. name, it said.
Sony technology is likely to prove useful in future financial services, such as the fintech area, it said, providing “synergies.” It will also enhance profitability, it said.
That term, used by Sony for years, refers to how various parts of its sprawling operations can work together for overall gain.
That strategy of diversification is helping it as certain parts of Sony's business struggle while others, such as products related to health care and public safety, perform well during the crisis.
The coronavirus crisis has delayed Sony music and movie releases and disrupted its product supply chains.