Sony Corporation (NYSE:SNE) (TYO:6758) announced that it entered a memorandum of understanding (MOU) with Japan Industrial Partners (JIP) confirming its intention to sell its PC business unit under the VAIO brand.
Under the memorandum of understanding, Sony Corporation (NYSE:SNE) (TYO:6758) will sell its VAIO PC Business and certain related assets to a new company that will be established by Japan Industrial Partners.
Sony Corporation (NYSE:SNE) (TYO:6758) and and Japan Industrial Partners are hoping to sign a definitive agreement of the acquisition next month. Both companies expect to complete the deal by July 1, 2014, but are still discussing the terms and conditions of the transaction as well as the structure of the new company.
According to Sony Corporation (NYSE:SNE) (TYO:6758), the new company will independently operate the VAIO PC business, and will be responsible for planning, design, development, manufacturing, and sales.
The new company will initially focus on the sales consumer and corporate PCs in the Japanese market, optimize its sales channels, scale of operations, and evaluate potential opportunities for geographic expansion to be able to obtain a stable profit faster.
Its headquarters will be located at Nagano Technology Site, the current center of Sony’s PC Operations. The new company is expected to hire around 250 to 300 Sony employees engaged in PC related operations.
Japan Industrial Partners will provide capital investment and management support while Sony Corporation (NYSE:SNE) (TYO:6758) will initially invest 5% capital to the new company to support its launching and facilitate a smooth business transition. The companies will continue to negotiate the price for the proposed sale of the VAIO PC business depending on the full scope of the assets that will be sold, which will be determine in the final definitive agreement.
Sony optimal solution
After conducting a comprehensive review of several factors including the drastic changes in the global PC industry, Sony Corporation (NYSE:SNE) (TYO:6758) concluded that the optimal solution to continue to support VAIO customers and provide employment opportunities to its personnel was to sell its PC business unit to a new company.
The stock price of Sony Corporation (NYSE:SNE) (TYO:6758) is up by more than 4% to $16.54 per share at the time of this writing, around noon in New York.