Sony has announced that it will split off its camera division and now it will be a part of a separate company. The company has further announced that it will definitely establish a holding company named “Sony Electronics Corporation” effective from April 1st, 2020.

Even though the split off happened, the camera division will fall under the blanket, Sony company division. This is not something odd, as it had been practiced by different companies before. The reason why companies do this is to make sure that the overall successful company is not being used to hold up less profitable divisions.

Before this announcement was made, one of Sony’s investors Daniel Loeb increased his stake in Sony. He was able to do that mainly after the stock market crash due to the corona pandemic. The pandemic hit the stock markets hard, and as a result, the stock prices came plummeting down. The current stock price of Sony came down the same way.

Loeb had urged Sony to split off some of its divisions, but the company was adamant about keeping the tech and entertainment under one roof. However, now it looks like Sony did the exact opposite that they were so adamant about.

Sony will now incorporate Imaging Products and Solutions, Home Entertainment and Sound, and Mobile Communications for its Electronics Products and Solutions segment. This new change will also apply to related global sales and marketing, manufacturing, logistics, procurement, and engineering platforms.

Furthermore, the new strategy for Sony also means that it will try to optimize its organizational structure, talent, and business portfolio, and enhancing competitiveness and creating new business.

Loeb has mentioned that Sony would take money away from its camera division and use it to further enhance the entertainment division. Cutting the funding for the camera division means that Sony’s cameras will greatly suffer in the upcoming future.

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