Sony looks likely to sell battery business

Sony is looking likely to sell its battery business, after reports emerged that up to three different parties could be interested in its purchase, all of them investment banks. This move would see the production of li-ion batteries for laptops and smartphones being completely sold off to another firm.

Like several other Japanese firms, Sony has struggled in recent years with increasing competition from Korea and from a strong Yen. It has also faced much stiffer competition in this console generation than it did in the last. While the PS2 dominated, its taken until recently for the PS3 to catch up to the Xbox 360 in terms of sales numbers.

In the wake of these problems, Sony is looking to offload ageing assets and make a bit of money. With a turnover just shy of $1.75 billion (£1.1 billion), there's potential for a large payout by prospective buyers.

New CEO Kazuo Hirai has promised to turn around Sony's ailing fortunes, partly by taking the TV side of the business in hand which has suffered the most in recent years. However, with Sony's stock price dropping and news that its debt had been downgraded to “junk” status, it makes it harder for borrowing to take place and selling off chunks of business starts to look more viable.

While Sony has yet to officially comment on this, Reuters seems quite convinced that it's legitimate.

KitGuru Says: Do you guys think stories like this show Sony's influence in the world of tech is waning? Or are we seeing the calm before the stom and a triumphant return to prominence for the company? Perhaps you think the PS4 will turn things around. Let us know.

Become a Patron!