Sony is closing in on a sale of Vaio to a local private equity fund after several strategic buyers balked at taking on the personal computer business, according a person familiar with the process.
The Japanese electronics group has been battling to turn round its computing and TV businesses, which have been weighing on its profits, and has been reassessing its strategy for the PC business - including whether to keep it at all.
A sale to Japan Industrial Partners – a private equity venture backed by Bain Capital and Mizuho Securities – is likely to mean the survival of Vaio computers and laptops in Japan but the end of its ambitions overseas, according to the person.
Sony said at the weekend that it was addressing various options for the PC business as it denied reports that it was in talks to create a joint venture with Lenovo of China.
“We helped several strategic buyers look at the business, but none decided to pursue an offer,” said one banker.
The Nikkei in Japan reported on Wednesday that Sony and JIP were in talks over a sale of Vaio to a new company created and owned by JIP, in which Sony may take a small stake. The unit could fetch between Y40bn and Y50bn – or up to $460m, the Nikkei reported.
PC sales have been hurt globally by the growth in tablet devices. Worldwide shipments have fallen by 13.5 per cent over the past two years, according to Gartner, the research group.
Sony’s global market share has never been strong, but its own global sales have dropped by more than 27 per cent over the past two years, to just 6m machines, while its market share has fallen from a peak of 2.3 per cent to 1.9 per cent, according to Gartner.
Moody’s, the credit ratings agency, cut Sony to junk rating status late last month saying that its profitability would be “weak and volatile” until the turnround of its TV and PC businesses translated into better earnings.
Analysts expect the company to make a loss of Y30bn or more for 2013 when it reports earnings on Thursday.
Sony side-stepped a denial of a sale to JIP. “Sony has made no announcement in this regard. As Sony has announced previously, Sony continues to address various options for the PC business, but Sony has no further comments.”
JIP declined to comment.
Sony shares rose 4.6 per cent to Y1,600 as investors took heart from the prospect of a disposal of the ailing business.