Sony Corporation announced plans to spin off its financial services division to enhance its independent fundraising capabilities while maintaining collaboration with the Sony Group and continuing to leverage the Sony brand.
During an investor day event, Sony CEO Hiroki Totoki emphasized the strategic importance of this move, stating, "Through the spin-off, Sony Financial Group will secure its own fundraising capabilities while continuing to use the Sony brand and collaborate with Sony Group."
The company intends to distribute just over 80% of shares in the Sony Financial Group, which encompasses banking and insurance businesses, to Sony shareholders through dividends in kind. This spin-off marks a significant milestone as the first partial spin-off by a Japanese company accompanied by a direct listing—the first such occurrence in Japan in more than 20 years—scheduled for September 29, 2025.
Additionally, Sony Financial Group plans to repurchase shares worth approximately 100 billion yen by March 2027, underscoring its commitment to shareholder value.
The financial arm's origins trace back to the late 1970s when Sony's co-founder Akio Morita initiated a life insurance business catering directly to consumers. Over recent years, Sony has strategically shifted focus away from struggling hardware operations to concentrate on its thriving entertainment sector, including the PlayStation gaming business. Notably, entertainment activities generated over 60% of Sony's profits in the previous fiscal year.
