Tokyo-based Sony is making a tender offer for the shares of Sony Financial Holdings Inc, of which it now owns about 65%
The coronavirus crisis has delayed Sony music and movie releases and disrupted its product supply chains
Sony Corporation 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.
Last week, Sony announced its profit crashed 86% in January-March from a year earlier to 12.6 billion yen ($118 million), a fraction of the 87.9 billion yen earned in the same quarter of the previous year.
The outbreak has crimped consumer spending, shut movie theaters, cancelled events and sent share prices falling - all damaging for Sony. Consumer demand declined, especially in regions where lockdowns closed retailers. Shutdowns of factories in China and Malaysia have also hurt.
Akio Morita, Sony's late founder, always stressed long-term management, and the need for a clear purpose and direction, Yoshida said. "I feel this is more crucial, now that the new coronavirus outbreak has changed the world."
He said Sony's strengths remain unchanged, in bringing people together and moving people emotionally, while coming up with devices like its hit CMOS sensor for images in smartphones.
"People's values are going to change. Everyone in the world is now thinking about what is truly precious to us? And that means we continue to grow close to people," he said. (AP) SCY SCY