Sony’s stock closed today at 22.91 points, nearly two points higher than it was eight hours before. That’s good for a 9.25 percent jump in Sony’s market price, an exceptional and quite honestly stunning jump that other firms must be envying right now.
At first glance, one may think that the jump had to do with Microsoft’s poor showing the Xbox One reveal, and that just may be part of the story. But according to Bloomberg, Sony may be spinning off its Entertainment Division to better realize profits.
Bloomberg notes that the jump correlated directly with a report from massive Japanese newspaper Nikkei that the company is indeed “leaning toward spinning off its entertainment division,” which is primarily comprised of Sony Pictures Entertainment and Sony Music Entertainment. Such a move was first publically suggested by Daniel S. Loeb, a hedge fund manager who happens to own 6.5 percent of Sony.
The article also notes that “Sony executives are holding their regular corporate strategy meeting in Tokyo tomorrow. The company has relied on profit from its entertainment division to offset losses from its flagship consumer electronics business.”
Whatever the reasons, Sony stock is now soaring after the Xbox One was revealed, a turn of events that should have investors in the electronics giant all over the world dancing, screaming and chanting for joy.