Sony Corporation News
14 articles
growth-negative
Stocks to watch next week: BP, Diageo, Disney, Uber and WPP
BP is set to release its second-quarter results amid declining oil and gas prices, with analysts expecting earnings of $1.35 per share and $60 billion in revenue. The company is under pressure due to weak cash flow, rising net debt, and challenges in its transition to cleaner energy sources. Activist investor Elliott has raised concerns over BPs performance, particularly its lagging shareholder returns. Analysts predict a pre-tax profit of $4.6 billion, up from $4.2 billion in Q1, but still below past levels. BPs cash flow and net debt, forecasted to be $24.9 billion by Q1 2025, remain key issues.
growth-negative
The Japanese giant eyes exit from IoT-focused R&D center after workforce cuts.
Sony is planning to exit its IoT-focused R&D center in Israel by seeking a buyer for its chip operations. The company has engaged investment banks to facilitate the sale, with the operation valued at approximately $300 million. This move follows significant workforce reductions at the Israeli development center, which previously employed around 400 people. The center, established after Sonys acquisition of Altair in 2016, focuses on developing connectivity solutions for IoT and smart sensors. It specializes in designing advanced chips for low-power cellular networks, emphasizing ultra-low power consumption and robust security. The facility also develops digital signal processors that integrate AI into sensors and complete modems and system-on-chip solutions.
LayoffsAcquired-by
growth-negative
Up to a quarter of Hod Hasharon staff may be let go amid global cuts.
Sony Semiconductor Israel, a development center in Hod Hasharon, is set to undergo significant layoffs, potentially affecting over 100 employees out of its 400-strong workforce. This move is part of broader global cuts by Sony, which has laid off hundreds of employees over the past year, primarily in its gaming division. The center, established after Sonys acquisition of Altair for $212 million in 2016, focuses on developing low-power, compact chips for various applications. Despite the layoffs, the center continues to play a crucial role in Sonys semiconductor strategy. The company has not commented on the layoffs.
Layoffs
growth-positive
CEO Nohik Semel spoke to CTech at Tech TLV about the differences in some of modern-day computing.
Nohik Semel, CEO of Sony Semiconductor Israel, discussed the shift towards edge computing at the Tech TLV conference. He highlighted that edge computing is becoming more prevalent due to the high costs and security concerns associated with cloud computing. Semel noted that recent U.S. regulations on AI chips would not significantly impact Sony Semiconductor Israel, as their operations focus on edge rather than cloud computing. He also mentioned the increasing connectivity of IoT devices in both B2B and B2C spaces, aligning with the companys operational domains.
growth-negative
Sony Dives Most in Two Years After Cutting PS5 Sales Outlook
Sony Group Corp. shares fell by 8.4% after the company cut its sales projections for the PlayStation 5 gaming console. Sales in the December quarter were about a million units lower than analysts estimates, leading Sony to reduce its sales forecast for the fiscal year from 25 million units to 21 million. Sony also announced plans to partially spin off its financial services unit in 2025 to focus on growing its entertainment and image sensor businesses. The company faces increased competition from rivals Nintendo and Microsoft, who are expected to launch new hardware in time for the holiday season.
CustomersManagement Changes
growth-positive
Sony Unveils Slimmer New PlayStation 5 With Detachable Disc Drive
Sony Group Corp. has announced a new, slimmer PlayStation 5 with a detachable disc drive, aiming to boost sales during the upcoming holiday season. This is the first significant update to the current generation console, which was launched in November 2020. The new PlayStation 5 model offers the option to upgrade the cheaper digital-only version with a Blu-ray drive add-on. The consoles, with and without the disc drive, will go on sale in November, priced at $500 and $450 in the US.
Customers
growth-positive
Rihanna, Drake and Dr. Dre Get Handcrafted $11,000 Mics From This Tiny Factory
Sony Group Corp.s subsidiary, Sony Taiyo, has implemented a unique approach to its factory floor to accommodate workers with disabilities. The company uses cellular manufacturing, where a single person handles the entire production process from raw parts to packaging at a customized work station. This approach has proven beneficial for the quality of the finished product, particularly in the manufacturing of audio gear. Sony Taiyos revenues tripled after adopting the cellular method. The factory produces microphones, including the C-38B and C-800G models, which are used by industry stars like Dr. Dre. Approximately 60% of the staff at Sony Taiyo have disabilities, providing employment opportunities for individuals who often face limited options in Japan. Sonys focus on workplace inclusion and its success in manufacturing specialized equipment contribute to its growth-positive impact.
CustomersPartners
growth-positive
Sony Acquires High-End Headphone Maker to Boost PlayStation
Sony Interactive Entertainment is acquiring Audeze LLC, an audiophile gear maker, to enhance the sound experience of its PlayStation products. Audeze will continue to operate independently and produce products for other platforms while benefiting from being part of the PlayStation ecosystem. The financial terms of the acquisition were not disclosed. Audeze is known for its high-end headphones used by music professionals and enthusiasts, and it has recently expanded into gaming and spatial audio technology. This acquisition aligns with Sonys efforts to expand its entertainment hardware offerings and follows the introduction of the PlayStation Portal and new wireless headphones and earphones. The acquisition is expected to contribute to the growth of Sony Interactive Entertainment.
Partners
growth-positive
Skylo forms partnership with Sony Semiconductor Israel - SpaceNews
Skylo, a satellite communications startup, has announced a partnership with Sony Semiconductor Israel to develop and deploy cellular chipsets that can connect over geostationary satellites networks using narrowband IoT protocols. The partnership will help Skylo scale the manufacturing and deployment of its Skylo Hubs, which provide affordable connectivity for industries with assets spread globally. Skylo investors include SoftBank, Boeing HorizonX Ventures, and Innovation Endeavors. The partnership with Sony makes Skylo the first company to deploy cellular IoT chipsets based on narrowband IoT protocols for 5G networks. Skylo plans to offer its communications services in South Asia later this year.
Partners
Altair Semiconductor Changes Its Name to Sony Semiconductor Israel
growth-positive
Sony is the Latest Japanese Company Looking to Tap Israeli Startups With New Fund
Sony Corp. plans to establish a joint fund with Daiwa Capital Holdings Co., Ltd. called Innovation Growth Ventures (IGV) to raise $185 million for investing in tech startups in Japan, Europe, the U.S., and Israel. Japanese investors have been increasingly backing Israeli companies, with 34 companies receiving investments in the first half of 2019. Sony is among the Japanese corporations looking to tap into the Israeli startup ecosystem. Other Japanese companies, such as Dentsu Inc., Mitsubishi Corp., Hitachi Group, and Sompo Holdings Inc., have also established operations or innovation hubs in Israel. Trade between Israel and Japan has been growing, with a 20% increase in 2018.
Investment
growth-positive
Sony CEO visits Israel development center
Sonys president and CEO, Kenichiro Yoshida, visited Israel and Sonys development center. Yoshida also met with a limited number of startups, potentially in the fields of image processing and gaming. Altair Semiconductor, which was acquired by Sony in 2016 for $212 million, confirmed Yoshidas visit. Sony is a large Japanese corporation with a market cap of $60 billion and is a global leader in photography and video game consoles. Yoshida, who became CEO a year ago, previously served as Sonys CFO and led structural changes within the company.
AcquisitionPartners
growth-positive
Sony Builds Its Internet Of Things Business By Acquiring Altair Semiconductor
Sony Corporation will acquire Altair Semiconductor for $212 million to develop its Internet of Things business. Altair makes chips that connect devices to LTE, which is emerging as a low-power alternative for connecting smart devices. Sonys purchase of Altair will help it compete against other companies working on cellular standards for the Internet of Things. The acquisition is expected to close early next month and will not have a material impact on Sonys financial results for 2016.
Acquisition
growth-positive
Sony invests $10m in Rainbow Medical
Sony Corporation has invested $10 million in Rainbow Medical Ltd. Sony is building its brand in the healthcare field and will now try to sell its own medical devices. Rainbow Medical specializes in complex systems, especially implants. Sonys investment is apparently intended for another field. Rainbow Medical is managed by Efi Cohen-Arazi and has received investments from other medical devices giants such as Medtronic Inc., Abbott Laboratories Inc., and Sorin SpA. Sony is also involved in a joint venture with Olympus Corporation, focusing on miniature imaging systems for endoscopic procedures. Sony is looking to grow its medical operations and expand into new markets, including healthcare.
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