M&G reporter
Sony’s chair, Norio Ohaga, and president, Nobuyuki Idei, recently announced their company’s online banking alliance with JP Morgan and Japan’s Sakura Bank.
The online bank, to be capitalised at 222-million, will be 80% owned by Sony, 16% by Sakura and 4% by JP Morgan. It is due to begin services in the first half of 2001 with a target of one trillion yen (about R6,23-billion) in deposits within five years. Sony hopes it will generate an annual profit by its third year.
But while it is aiming high, analysts did not expect Sony to become a big financial player overnight. “Sony is still after all an amateur in this field,” said Masahiro Ono, an analyst at Warburg Dillon Read.
The online banking announcement helped fuel a 5,6% rise in Sony’s shares in Tokyo. The consumer electronics company is to establish a United States holding company, Sony Broadband Entertainment, to house Sony Music Entertainment and Sony Pictures Entertainment. The holding company will work to strengthen Sony’s online content distribution and examine possible strategic alliances.
“This would stamp out speculation that we may sell the US entertainment units,” said Idei.
Sony is also thinking of listing its Internet provider, Sony Communication Network. And it plans to issue $57,3-million in convertible bonds to raise money for incentive plans for executives at its US subsidiaries.