The move to spin off the Alibaba stake satisfies a persistent investor demand, but could also ratchet up pressure on Yahoo Chief Executive Marissa Mayer to make quicker progress in strengthening Yahoo’s struggling media and advertising business.
“It’s not going to be easy from now on,” said B. Riley and Co analyst Sameet Sinha. “She has to perform now. There’s nothing shielding her.”
Shareholders feel that Yahoo and its stake in Alibaba would be worth more separately, as long as the Alibaba shares are not subject to the standard 35 percent tax rate that would be incurred from selling the shares.
Yahoo is worth approximately $45 billion. That includes its Alibaba stake of nearly $40 billion, meaning the current Yahoo share price assigns little value to the core business. Some investors believe the email, website and other operations are worth between $7 billion and $8 billion.
Yahoo, which is trying to reverse a multi-year decline in revenue, has faced increasing investor pressure more than two years after Mayer took the reins to lead a comeback plan.
Yahoo said its board of directors has authorized a plan to spin off the stake, tax-free, into a newly formed independent registered investment company. The stock of the company will be distributed pro-rata to Yahoo shareholders and the transaction is expected to close in the fourth quarter of 2015, Yahoo said.
The new entity will include Yahoo’s 384 million shares in Alibaba as well as an unspecified “legacy, ancillary” Yahoo business, the company said.
For a while, the rumor mill has manufactured hell on earth yarns claiming that Samsung is set to buy the Canadian smartphone maker Blackberry.
The deal always seems to fall through, and in any event has never happened.
However the Financial Post has found evidence that this time Samsung is actively pursuing a plan to take over or buy a significant stake in BlackBerry.
The story is still a rumour because both companies have denied such a plan may be in the works, but a document obtained by the Financial Post, prepared for Samsung by New York-based independent investment bank Evercore Partners, outlines the case for, and the potential structure of a possible purchase of BlackBerry.
The paper is a little elderly and was written in the last quarter of 2014, but a source familiar with the matter said that Samsung remains very interested in acquiring all or part of BlackBerry for the right price.
J.K. Shin, Samsung’s co-chief executive, told The Wall Street Journal that his company is in talks to use some of BlackBerry’s technology in the South Korean company’s devices, but is not interested in an acquisition. “We want to work with BlackBerry and develop this partnership, not acquire the company.”
But it appears that Samsung was caught off guard by a Reuters leak earlier this week. It had hoped it could move in quickly on BlackBerry, and the company’s share price would stay low. When the news went up and the share price rose its bid looked a little weak.
BlackBerry appears to have learned of the price Samsung was hoping to pay through the Reuters leak, before the company could make a formal offer. This is the sort of thing Samsung wanted to avoid.
In five years, BlackBerry thought the return on their turnaround strategy as implemented by John Chen was going to do better than the cash they will be receiving today.
Still, the source maintains that Samsung is still keen on making a deal happen. The talk earlier this week about Samsung extending its cooperation with BlackBerry, which was notably lacking in specifics, is “just setting it up,” the source said. “Samsung hasn’t walked away” from an acquisition. “They’re leaning towards it.”
Samsung Electronics recently offered to purchase BlackBerry Ltd for as much as $7.5 billion, hoping to acquire its valuable patents as it battles Apple in the corporate market, according to a person familiar with the matter and documents seen by Reuters.
South Korea’s Samsung proposed an initial price range of $13.35 to $15.49 per share, representing a premium of 38 percent to 60 percent over BlackBerry’s current trading price, the source said on Wednesday.
Representatives from the two companies, which are working with advisers, met last week to discuss a potential transaction, the source said, asking not to be identified because the conversations are private.
The Waterloo, Ontario-based company said in a statement that it “has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. Shares of BlackBerry, which soared nearly 30 percent following the Reuters report, fell back about 15 percent in after-hours electronic trading following the statement.
Samsung also told Reuters in Seoul that it has no plans to acquire Blackberry. “Media reports of the acquisition are groundless,” a company spokeswoman said.
Separately on Wednesday, Canadian newspaper Globe and Mail reported BlackBerry has shunned a handful of takeover overtures in recent months as its board and largest investor think its restructuring strategy will deliver greater shareholder value than current acquisition offers.
The patent, which cites specific weaknesses in GoPro’s cameras, includes details about a camera system that can be mounted on bike helmets or scuba masks, Apple said in an application filed with the U.S. Patents and Trademark Office.
Shares of GoPro, whose cameras can be mounted on helmets, surf boards, bikes and dog harnesses, fell as much as 15 percent.
Apple’s newly patented camera system can also be used under water to take pictures and record sounds, according to the application.
A potential entry by the iPhone maker into the action camera market could also put pressure on privately held Polaroid Corp, which makes the small and colorful Cube cameras.
JMP Securities analyst Alex Gauna, however, said it was premature to assume that Apple would soon launch a wearable camera.
“It does not seem to me that launching an action camera accessory is the most logical product extension for Apple to pursue right now,” Gauna said.
Apple declined to comment, while GoPro was not immediately available for comment.
“I think that it will have about the same impact on GoPro as the iPhone has had on camera makers and that impact is that there are fewer cameras sold but the number isn’t zero,” Wedbush Securities analyst Michael Pachter said.
Videos shot with GoPro’s cameras have created a buzz on the Internet, attracting millions of views on YouTube.
Olympic gold medal winning snow boarder Shaun White and 11-time world champion surfer Kelly Slater are among well-known athletes who have endorsed the cameras.
Intellectual property blog Patently Apple reported earlier in the day that Apple’s patent, which was filed by the company in 2012, incorporates some intellectual property from Eastman Kodak Co that the company acquired in November 2013.
Japan’s hemorrhaging technology giant Sony Corp plans to slice its TV and mobile phone product line-ups to cut costs, counting on multi-billion dollar revenue surges for its buoyant PlayStation 4 and image sensor businesses over the next three years.
Having lost ground to nimbler rivals like Apple Inc and Samsung Electronics Co Ltd in consumer electronics, Sony said on Tuesday its goal for TV and smartphones is to turn a profit, even if sales slide as much as 30 percent.
“We’re not aiming for size or market share but better profits,” Hiroki Totoki, Sony’s newly appointed chief of its mobile division told an investors’ conference. A poor showing by its Xperia smartphones has weighed heavily on recent earnings and Sony said more detail on plans for the unit will be unveiled before end-March.
Under its new three-year electronics business plan, Sony said it was aiming to boost sales for its videogame division by a quarter to as much as 1.6 trillion yen ($13.6 billion). It said that will be helped by personalized TV, video and music distribution services that should lift revenue per paying user.
At its devices division, which houses its image sensor business, Sony said sales could increase 70 percent to as much as 1.5 trillion yen. Sony’s sensor sales are already robust, with Apple using them in its iPhones while Chinese handset manufacturers are increasingly adopting them.
In a similar event last week for its entertainment units, the conglomerate said it was aiming to lift its movie and TV programming revenues by a third over the next three years.
The world’s No.1 Internet social network with 1.35 billion monthly users has been quietly testing a version of its website aimed at workplace collaboration. The service, dubbed Facebook at Work, allows users to exchange messages and share documents using Facebook’s scrolling news feed and other familiar features from the consumer version of Facebook.
The professional version of Facebook, which could compete with services such as LinkedIn Corp, as well as Salesforce.com Inc and Microsoft Corp, would allow users to maintain special profiles that are distinct from their existing Facebook profiles, the person said. Work activities would not be shared on a user’s personal profile, and the baby photos, videos and general banter popular in the consumer version of Facebook would not encroach into the professional version.
A Facebook team in London is leading the effort and a small number of companies are currently running a pilot version of the service, the person said.
It is still unclear how Facebook plans to make money from the professional service. Facebook is not currently charging a subscription fee for the version being tested, according to a report in the Financial Times, which first reported news of the service. Facebook currently generates the bulk of its revenue from ads that appear on its existing service.
Some analysts had predicted Sprint would fall to fourth place behind T-Mobile, which has 53 million wireless customers, due to Sprint’s losses of postpaid phone subscribers. Those customers pay monthly bills after using a wireless service, as opposed to paying in advance.
In the company’s earnings call late Monday, Sprint CEO Marcelo Claure announced a loss of 500,000 postpaid phone connections during the quarter that ended Sept. 30. That’s down from a loss of 620,000 in the second quarter and 693,000 in the first quarter. For the first nine months of the year, Sprint has lost about 1.8 million postpaid customers.
Still, Claure said that Sprint has worked to stabilize is subscriber base with new family service plans and special pricing for the iPhone 6, which he said has been the best iPhone launch by Sprint ever. He cited record sales, but did not disclose any numbers.
“I have now completed 85 days [as CEO], and couldn’t be more excited about the progress made in those short weeks…,” Claure said. “We have started a transformation, while the company faces headwinds. ”
The biggest determining factor in a carrier’s success is postpaid phone customer growth, Claure noted.
Sprint’s wireless customer base includes 29.9 million postpaid connections (for all devices, not just smartphones); 15.1 million prepaid connections; and another 9.9 million connections made from Sprint affiliates, wholesale customers and devices of various types.
In contrast, T-Mobile said last week it had added 2.3 million subscribers in the same quarter, giving it 52.89 million customers.
With the benefit of wholesale and affiliate connections, “we still have the third most [connections],” Sprint spokesman Scott Sloat noted in an email.
Remaining in third place gives Sprint bragging rights, but it wasn’t something anyone at Sprint highlighted, given T-Mobile’s strong surge in recent quarters and Sprint’s problems.
Despite the overall third quarter customer losses, both September and October saw year-over-year improvements — the first such improvements in 2014, Claure said.
Yahoo Inc is expected today to reveal cost-cutting efforts and give details of how it is evaluating possible acquisitions as it faces mounting pressure from an activist investor, the Wall Street Journal reported, citing a person who was briefed on the plan.
Yahoo is considering purchasing one or more large technology startups with some of the $5.8 billion it made from the initial public offering of Alibaba Group Holding Ltd, the newspaper said.
Representatives at Yahoo did not immediately respond to an email seeking comment outside regular U.S. business hours.
Last month, activist investor Starboard Value LP publicly pressured Yahoo to cut what it referred to as a “bloated” cost structure.
Starboard, the second activist investor to target Yahoo in the last three years, also said the company should quickly “monetize” its Asian assets, which exceed the enterprise value of its actual business.
Earlier this month, Yahoo said it is reducing the size of its operations in Bangalore, India, the Internet company’s largest engineering facility outside its California headquarters. It is also closing its office in Jordan.
Yahoo is “streamlining” its operations in foreign offices, which might involve a combination of closing offices, cutting jobs and moving workers to its Sunnyvale, California, headquarters, the Journal said.
BlackBerry’s new qwerty Passport smartphone quickly sold out just hours after going on sale online last Wednesday, with another 200,000 back orders waiting in line, BlackBerry CEO John Chen proudly announced.
Chen didn’t indicate how many units were sold online, but said ShopBlackBerry.com sold out the Passport in six hours, with Amazon.com selling iout in 10 hours before customers began leaving online orders that had reached 200,000 as the day it debuted. The device has a price tag of $599 unlocked.
“That’s extremely good receptivity” for Passport, Chen said.
But that wasn’t Chen’s only good news in what he called a “very solid” second quarter that ended Aug. 30 with an earnings loss of $11 million, or 2 cents per share, compared to an 11-cent per share loss the previous quarter. Still, revenues were $916 million for the quarter, down from $966 million in the previous quarter, and well below the $1.5 billion reported for the same quarter a year ago.
Chen predicted profitability for BlackBerry by mid-year 2015, possibly in the first fiscal 2016 quarter that starts in March 2015. “You can see a progressively good trend going forward,” Chen said.
Chen said that large companies, especially in banking and government, are coming back to BlackBerry for its smartphones and BlackBerry Enterprise Server 10 software for security and management. They are coming for “stability,” he said.
“The product is broader and deeper and has history with most customers,” Chen added. “I have spoken to many executives and people are very interested in working with us. Our technology works and works well. Governments use it and major banks use it. We’re winning them back — knock on wood, I don’t want to be overconfident — and we’re starting to see that with very big companies.”
He also predicted more interest in BlackBerry once it launches its next operating system, BlackBerry 12, on Nov. 13 at an event in San Francisco.
The company posted a number of successes, including what it called a “normalized” use of cash of $36 million in the recent quarter, compared to $255 million in the prior quarter.
BlackBerry Ltd reported a smaller quarterly loss on Friday and is showing encouraging signals about its endangered smartphone business as well as its software and services sales, spurring a more than 4 percent jump in its shares.
The Canadian company, a smartphone pioneer pushed to the margins by Apple’s iPhone and devices running Google’s Android software, is now focusing more on software and services than on hardware as it works through a long turnaround.
On the services front, the company reported a huge number of conversions in its second quarter to its heavily promoted new device management platform. But BlackBerry’s hardware unit also offered hopeful news, posting an adjusted profit for the first time in five quarters, helped by lower manufacturing costs and strong demand for its low-end Z3 handsets in emerging markets.
“This is the first time in a long time that we have actually made money on hardware,” Chief Executive John Chen told reporters, while hinting at plans to unveil new phones at Mobile World Congress in Barcelona in 2015. “We think we can continue on that track, so hardware is no longer going to be a drag to the margin and the earnings.”
The Waterloo, Ontario-based company’s revenue in North America rose from the previous quarter, but sales slipped elsewhere. Its total revenue was down more than 40 percent from a year earlier.
“They’re taking all the right steps, which is great. It’s encouraging to see,” said BGC Partners analyst Colin Gillis. “Now we’ve got to see what Chen can do about the revenue decline.”
BlackBerry shares were up 5.2 percent at C$11.45 on the Toronto Stock Exchange and up 4.6 percent at $10.26 on Nasdaq.
The one-time smartphone industry pioneer recently concluded a three-year long restructuring process and has largely halted the bleed, but it is now up to Chief Executive John Chen to prove that the company’s new devices and services are capable of generating sustainable new streams of revenue and returning it to profitability.
“BlackBerry is still fighting for survival. They still need to turn around and develop a viable ongoing business model,” said Morningstar analyst Brian Colello.
“Their products are certainly pointing toward that and the new strategy makes sense, but there is still a lot of execution risk at this point in a very competitive market.”
BlackBerry debuted the Passport on Wednesday in Toronto, with simultaneous events also held in London and Dubai.
The launch of the Passport, which boasts a big square screen and a unique touch-sensitive tactile keyboard, will kick off a frenzied spell for Waterloo, Ontario-based BlackBerry. The company is set to report fiscal second-quarter results on Friday and within a couple of months it is also expected to launch the long-awaited BlackBerry Classic, which bears similarities to its once wildly popular Bold smartphone.
“BlackBerry just needs one hit phone for now,” Colello said. “It doesn’t quite matter whether it is the Passport, the Classic or anything else, but they do need one device to jump-start the hardware business again. The big question really is whether any of these devices will kick-start it.”
The company is hoping the Classic and the launch of its new mobile device management system – BlackBerry Enterprise Service 12 (BES12) – will help it claw back ground ceded to rivals in both the hardware and services market.
The BES 12 platform will allow IT managers at large firms and government agencies to not only manage and secure BlackBerry devices, but also all Android, iOS and Windows-based devices on one platform.
Chen, a well-regarded turnaround expert in the tech sector, intends to remain a competitor in the smartphone arena, but is focused on reshaping the company to build on its core strengths in areas like mobile data security and mobile device management.
French budget-conscious telecom operator Iliad has set a mid-October deadline to decide whether to improve its bid for T-Mobile US or walk away as it faces resistance from seller Deutsche Telekom, several people familiar with the situation said.
Deutsche Telekom, which owns 66 percent of the fourth-largest U.S. carrier, has doubts that Iliad will be able to improve the U.S. business since the French startup has no track record in the country, a source close to the German company’s management said.
Under the deal structure proposed by Iliad, Deutsche Telekom would have to keep a stake in the combined company.
Iliad is currently in talks with several U.S. banks to help it finance a possible improved bid for T-Mobile US alongside existing lenders HSBC and BNP Paribas, the people familiar with the situation said, after a $33 per share offer for 56.6 percent of T-Mobile US was rejected by Deutsche Telekom.
Chief Financial Officer Thomas Reynaud said Iliad’s key leverage ratio would not surpass 4.5 times net debt to earnings before interest, tax, depreciation and amortization (EBITDA). He also said that Iliad would limit any capital increase to fund the T-Mobile bid to 2 billion euros ($2.57 billion).
Iliad is also seeking to team up with private equity funds including KKR to raise about $5-6.5 billion, the sources, who could not be named because the talks are private, said.
T-Mobile US, Iliad and KKR declined to comment. Deutsche Telekom could not be reached immediately for comment.
Iliad’s management team has now finished road shows to meet U.S. investors and is waiting to hear back from potential investors, the sources said.
Depending on how positive the feedback is from private equity investors, the French firm could be able to table an improved bid in the second week of October, two of the sources said.
Iliad could offer between $35 and $40 per share for a stake in T-Mobile of between 60 percent and 90 percent, depending on the appetite of private equity funds and lenders for the deal, two other sources said.
Nintendo’s Shigeru Miyamoto doesn’t want to make games for “passive” people; the attitude that games ought to be to be a roller-coaster ride, to entertain without challenge, is, to his mind, “pathetic”. That was the message from the legendary game designer in an E3 interview with Edge magazine, published in this month’s edition; it’s been presented by other news outlets as a sign of a Nintendo U-turn, moving away from the casual market it sought with the Wii and the DS in favour of re-engaging core gamers.
That’s exactly the sort of message that most of the games media wants to hear, of course. The media, after all, speaks exclusively to core gamers; casual players generally don’t bother with specialist media. “Nintendo has seen the error of its ways and realised that the only people worth making games for are you, my dear brethren!” is a crowd-pleaser of a message; but it’s also a pretty big leap to make from the comments Miyamoto actually made.
First, the context. Edge had just challenged Miyamoto over the fact that his prototype games at E3 were all somewhat difficult to play. They used the Wii U GamePad in new ways which it took a while to get accustomed to; the question implied in the text of Edge’s interview isn’t about casual games at all, but about the difficulty level of the prototypes. Miyamoto’s response does make clear a mental distinction between different types of game consumer and a preference for those who enjoy some challenge in their entertainment, but to extrapolate that into a U-turn in Nintendo’s development priorities is an overreach.
In fact, Miyamoto’s comments – equating passivity with “the sort of people who, for example, might want to watch a movie. They might want to go to Disneyland. Their attitude is ‘OK, I am the customer; you are supposed to entertain me’” – are punching in a number of directions at once. Certainly, he’s frustrated by people who play games without ever really engaging with them as a challenge; I doubt he’s a fan of free-to-play systems that allow you to pay money to bypass challenges. Equally, though, those comments are an attack on some approaches to AAA game design; barren technological wonders which serve as little more than on-rails galleries for artwork and pale narrative. Miyamoto isn’t saying “casuals have ruined the market”; far from it. He’s saying that there are consumers who demand spoon-fed entertainment at all points of the spectrum from core to casual, and that he doesn’t want to make games for any of them. (It’s also worth noting that he’s not really blowing his top over this; “pathetic” doesn’t carry the same kind of stinging indictment in Japanese that it does in translation.)
Later in the Edge interview, Miyamoto veers back to similar territory when he talks about the proliferation of mainstream game-capable platforms like iOS and Android devices. While adamant that Nintendo needs to continue to make hardware as well as software, he’s delighted that these new platforms exist, because they provide an “on-ramp” for consumers who haven’t engaged with games before. Nintendo previously saw itself holding a responsibility to try to open up new demographics for the games industry; now it seems that we’ve reached a tipping point, technologically and culturally, where that’s happening by itself.
Edge speculates that this means Miyamoto (and hence Nintendo) believes that the window has shut on making games for entry-level gamers. Titles like Brain Training, which opened up the DS to a huge audience of people who had rarely if ever played games before, may now be pointless; the consumers they ought to target are all playing games on their phones and tablets, so there isn’t an addressable market remaining there for dedicated hardware and more expensive (non-F2P) games. This is fair analysis, and indeed, it probably features in Nintendo’s thinking; let iOS serve as the entry level for new gamers and then hope that those who enjoy the experience will ultimately upgrade to the superior offerings available on a dedicated console.
At the same time, though, Nintendo itself has a conception of “casual” and “core” that probably isn’t shared by the majority of sites reporting Miyamoto’s comments. Miyamoto talks not about themes but about enjoyment of challenge as the distinction between the two groups. To him, a supposedly “adult” game full of blood and ripe language could be utterly casual if it spoon-feeds players with dull, linear gameplay. Meanwhile, a brightly coloured Mushroom Kingdom epic could qualify as “core” if it challenges players in the right way. Consequently, Nintendo’s family-friendly IP and the broad appeal of its themes is entirely compatible with a focus on “core games”, to Miyamoto’s mind. What he’s talking about changing is something at the root of design, not the thematic wallpaper of the company’s games; he wants to challenge people, not to force Nintendo’s artists to remove all the primary colours from their Photoshop palettes.
Viewed in this light, Miyamoto’s comments are an earnest and down-to-earth appraisal of Nintendo’s present situation; still recovering from the heady days of the Wii and figuring out how much of that flash-in-the-pan market is really sustainable, but knuckling down to the challenge of entertaining and delighting (and of course, selling to) those within the audience who really enjoyed games rather than latching onto the platform as a fad. Contrary to the more excitable reportage on his comments, Miyamoto is promising no major changes to Nintendo’s approach; rather, he’s re-committing himself and the company to the same course of action which delivered games like Mario Kart 8, a title firmly within the family-friendly Nintendo tradition and absolutely celebratory of challenge and good design.
“Core gamer” is a phrase that’s picked up a strong whiff of soi-disant elitism and exclusion over the past few years; the phrase “as a core gamer…” in a forum post or comment thread is this odd little corner of society’s equivalent of “I’m not a racist, but…”, indicating a post that’s probably going to brim with self-important awfulness. The bête noire of the core gamer is the “casual”, and just as any move by a game creator or publisher to cater to “casuals” is despised and derided, any prodigal son who declares their abandonment of the casual market and return to the core is greeted with an I-told-you-so roar of delight. This is a thin sliver of the market overall, of course, but a noisy one; as such, it’s worth reiterating that what Miyamoto absolutely did not say is that Nintendo is resetting its course to please these people. Nintendo, for many years to come, will still be a company defined by games that are broadly appealing, generally family-friendly and enormously accessible. Under Miyamoto’s watchful eye, they’ll also be challenging and engaging; but anyone taking his comments on “passivity” as near-confirmation that we’ll see Grand Theft Mario down the line is utterly misreading the situation.
A new survey commissioned by IHS in partnership with Gamer Network has shown that E3 gave a huge boost to the number of people interested in buying a Wii U, with purchasing intent growing by 50 per cent over the course of the event.
Around one thousand core gamers were surveyed on various purchase intentions before and after the LA show, revealing that, whilst Nintendo’s platform started out with the lowest number of people looking at buying it, it saw the biggest benefit from the show’s exposure. 20 per cent of respondents now intend to buy the machine, equal to those who are looking at an Xbox One, which saw a seven per cent increase in popularity.
Sony’s PS4, a clear leader going in to E3, lost ground to its competitors, sinking below 30 per cent of respondents.
In terms of anticipated games, consumers are champing at the bit for 2015′s third-party releases, with Warner’s Arkham Knight leading the charge with an incredible 60 per cent of those surveyed intending to buy the game for at least one platform. Gamers are slightly less excited for 2014′s titles, but Activision’s Destiny is the narrow leader for this year, edging out AC: Unity and GTA V with just under 50 per cent. Both Battlefield Hardline and CoD: Advanced Warfare are lagging behind slightly.
As might be expected, purchasing intent is higher amongst first-party exclusives for current platform owners. On PS4, Uncharted 4 was the most popular game both before and after E3 with 76 per cent of PS4 owners expected to buy it. On Xbox One, it’s Halo which pays the piper, garnering support from 77 per cent of One owners. Over on the Wii U and amazing 89 per cent of owners expect to buy the new Zelda game when it’s released. None of these platform-exclusive heavy hitters will land until 2015 at the earliest, which IHS predicts will increase pre-Christmas reliance on multi-platform games for Microsoft, Sony and, to a lesser extent, Nintendo.
“Although there are other exclusive titles coming in 2014 or already available,” the report reads, “none hold the influence that these leading titles have in terms of selling console hardware, with the exception of Mario Kart 8 for Wii U. As a result, the success of console sales this holiday shopping season will depend more heavily on the total value and content proposition including exclusive content offered by multi-platform games rather than a single, very influential system-selling exclusive. This factor will impact the marketing strategies of the platform holders as we move into 2014′s main shopping season.”
Sony Corp believes its TV division will swing into the black this financial year after a decade in the red, even if it falls short of its volume sales target, the head of the newly independent division said on Monday.
Masashi Imamura told a media round table that the TV business, which will become a separate subsidiary of Sony Corp on July 1, had reduced fixed costs during the last financial year, and profitability was now in sight.
He said Sony this year would be able to absorb the impact of any fluctuations in emerging market currencies, a factor he blamed for the unit’s failure to make a profit last year.
Sony has forecast an 18.5 percent rise in TV sales to 16 million units this year from 13.5 million units a year ago, an increase that analysts said was well above the industry’s average growth forecasts.
Imamura said the sales target was achievable, but added that the TV business would still turn a profit even if sales fell short of this goal.
Sony’s TV division will be split off from the parent company on Tuesday, a move aimed at boosting transparency and accountability in a bid to achieve and maintain profitability.
Sony Chief Executive Kazuo Hirai said at a corporate strategy meeting last month that the company had not ruled out an equity tie-up for the TV business, which is to be known as Sony Visual Products Inc, although nothing had been decided on the matter.
Sony’s TV business has seen relatively rapid turnover at the top over the past decade with six different chiefs, although Imamura has had the longest tenure, serving since August 2011.
Sony’s shares are down 8 percent so far this year, in line with the benchmark Nikkei average’s 7 percent drop.