Sony Plans Financial Arm IPO in October 2025, Reversing Previous $3.7 Billion Take-Private Deal

Sony Group Corp. has announced its intention to list its financial arm in October 2025, paving the way for a substantial capital injection as the media giant revises its outlook for its core gaming division, according to a report by Bloomberg on Wednesday.

This decision to make Sony’s financial group public comes after the release of its revenue report and a revision to its fiscal year-end projections. The move entails reversing a $3.7 billion take-private deal reached in 2020.

Sony has adjusted its revenue forecast after its flagship PlayStation 5 sold 8.2 million units in the December quarter, falling short by about a million from initial expectations. The company had previously anticipated ¥12.4 trillion in sales for the year but now projects ¥12.3 trillion ($81.7 billion).

In Q4 2023, Sony reported an operating profit of ¥463.3 billion and revenue of ¥3.75 trillion, aligning with average analyst estimates.

Kazunori Ito, Morningstar research director, commented, “The result showed Sony spent a lot on promotions to sell the PS5, as the unit’s profitability deteriorated, but the number of units it shipped during the quarter was much weaker than expected.”

Despite a robust software quarter, hardware sales fell short of expectations.

Marvel’s Spider-Man 2, a PS5 exclusive released in October, set a record as the fastest-selling debut title from Sony’s in-house studios, with 2.5 million copies sold in its first day.

Although this raised hopes of the PS5 gaining traction after years of limited availability, Sony’s target of selling over 25 million PS5 units this fiscal year remains uncertain. The PS5 was updated in October, becoming more portable and energy-efficient.

Sustaining momentum for the $499 machine is crucial for Sony’s revenue-generating games division. The PS5, in the market since late 2020, has faced challenges in connecting with Sony’s customer base due to supply constraints resulting from pandemic-related shipping bottlenecks and production issues.

Competitive pressures are expected to intensify as Nintendo Co. and Microsoft Corp. plan to release new hardware in time for the holidays.

Additionally, Sony may need to reassess its strategy in India following complications in the planned merger between its India unit and regional media company Zee Entertainment Enterprises Ltd, particularly concerning leadership. Investors are keenly watching for indications of Sony’s latest thinking on the Zee deal, which has been a focal point of the Japanese company’s expanded push into the Indian market with 1.4 billion people.



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