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Sony weighs listing, partial spinoff of financial arm

May 18, 2023
A Sony sign at a show.

CFOTO/Future Publishing via Getty Images

Sony is weighing a partial spinoff of its financial arm, which could happen in two to three years, the entertainment and tech giant said Thursday.

Why it matters: At a time when companies from Walmart to Starbucks have a financial angle, Sony may be backing away.

Details: Sony is looking to retain a stake of under 20% in the business, listing the arm that was taken private for $3.7 billion in 2020.

  • The move comes amid calls from investors — including activist hedge fund Third Point — to simplify the business and focus on its core in tech and entertainment.

Context: A nonfinancial business spinning off its finance arm is nothing new. General Motors famously sold off a majority stake in GMAC (now known as Ally Financial) in 2006 to raise capital for its automaking.

  • GM would later replace that business by buying AmeriCredit and renaming it GM Financial in 2010.
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