Sony Corporation(NYSE:SNE) [6758.T] announced Tuesday it has decided to purchase its financial unit, Sony Financial Holdings Inc. [8729.T] through an offer worth about $3.72 billion (400 billion yen). Japanese electronics and entertainment giant will able to reinforce its position in fintech field to create a competitive edge in the market.
Sony Corp. recently declared a partnership with Microsoft Corp. to embed Artificial intelligence into its latest imaging chip. The main feature of new module is that it has its processor and memory built in which make it capable of analyzing videos using artificial intelligence.
Sony Corporation has currently the ownership of 65% of Sony financials. As per the new deal it gave an offer of JYP 2,600 per share for purchasing the remaining shares of Sony Financials. Sony Financial is the main source of revenue for Sony Corporation. Sony Financial has a strong presence in the home country of Sony Corp. It is currently engaged in life and non-life insurance, banking and credit card business in Japan has total of 11,000 staff.
Shares of Sony Financial Holding Inc. soared +16.86% and up +348.00 during the last trading session. It has current price of $2,412.00. 8729.T has a day low range of 2,096.00 and a day high range of 2,413.00. Sony Financial has a trading volume of 994,200 as contrasted to the 3-months average volume of 980,454. Sony Financial has total market capitalization of 1.049 trillion.
Sony Corporation shares climbed +3.25% at $6,902.00 during the last trading session. It has trading volume of 9,304,200 as compared to the 3-month average volume of 8,414,453. Sony Corp. has previous close of 6,685.00. Sony has 52-week low and high range of 5,070.00-8,113.00, respectively.
President and CEO of Sony Kenichiro Yoshida made this acquisition announcement in hour-long presentation on Tuesday. This is the biggest deal of Sony under the leadership of Yoshida since a $2.3 billion acquisition of EMI Music publishing.