By Milana Vinn NEW YORK (Reuters) -Sony Group is exploring a sale of its unit that provides cellular chipsets for connected devices, as the group shifts its focus to the entertainment segment, according to three people familiar with the matter. The Japanese technology and entertainment conglomerate is working with investment bankers on the sale of […]
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Sony explores sale of cellular chipsets business, sources say
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By Milana Vinn
NEW YORK (Reuters) -Sony Group is exploring a sale of its unit that provides cellular chipsets for connected devices, as the group shifts its focus to the entertainment segment, according to three people familiar with the matter.
The Japanese technology and entertainment conglomerate is working with investment bankers on the sale of Sony Semiconductor Israel, which is currently in the early stages, the sources said.
It generates about $80 million in annual recurring revenue and is expected to be valued at close to $300 million in any deal, the sources said.
The business is expected to attract interest from financial sponsors and semiconductor industry players, added the sources.
Sony declined to comment. The sources requested anonymity as the matter is not public.
Formerly called Altair Semiconductor, Sony Semiconductor Israel provides cellular chipsets for connected devices such as wearables, smart meters, and home appliances.
Sony acquired the business in 2016 for $212 million.
Sony has been increasing its focus on games, movies, and music, with more than 60% of its profit coming from entertainment last year.
As part of its portfolio reshaping, Sony is preparing for a partial spinoff and direct listing of its financial services arm later this year.
A leading maker of image sensors, Sony said in April it is considering options for its chips division, including bringing in investment partners or adopting a fab-light strategy.
(Reporting by Milana Vinn in New York; Additional Reporting by Sam Nussey in Tokyo; Editing by David French and Rod Nickel)