Sony, Lenovo in talks on possible PC business alliance - report

TOKYO Sat Feb 1, 2014 1:25pm IST

A visitor takes a look at Sony's Vaio laptops at its showroom in Tokyo November 22, 2012. REUTERS/Kim Kyung-Hoon/Files

A visitor takes a look at Sony's Vaio laptops at its showroom in Tokyo November 22, 2012.

Credit: Reuters/Kim Kyung-Hoon/Files

Related Topics

Stocks

   

TOKYO (Reuters) - Japan's Sony Corp(6758.T) and Chinese technology company Lenovo Group(0992.HK) are in talks about a possible joint venture to take over Sony's loss-making Vaio PC business overseas, Japanese broadcaster NHK reported on Saturday.

The Japanese electronics and media giant called the report inaccurate while acknowledging that it was looking at various possibilities for the unit.

"Sony continues to address various options for the PC business, but the press report on a possible PC business alliance between Sony and Lenovo is inaccurate," the company said in a statement.

Sony has said it plans to revise its product and manufacturing strategy for the Vaio unit as it faces a slump in its PC business, hit by the popularity of smartphones and tablets.

Sony, which will release results next week, had previously predicted its PC business would be in the red for the year to end-March, without disclosing figures.

Moody's Investors Service cut Sony's debt rating to junk status last week, highlighting challenges in its television and PC businesses and pressure on profitability at its entire core consumer electronics operation.

Lenovo earns about 80 percent of its revenue from personal computers but has been aggressively diversifying into more promising markets.

Last week, Lenovo said it would buy Google Inc's (GOOG.O) Motorola Mobility handset unit for $2.91 billion, the fourth-largest U.S. acquisition by a Chinese or Hong Kong company ever, to face off against Samsung Electronics Co Ltd (005930.KS) and Apple Inc (AAPL.O) in the smartphone market.

(Reporting by Reiji Murai; Writing by Lisa Twaronite; Editing by Kim Coghill)

FILED UNDER:

Surprise Rate Cut

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Reuters Exclusive

Reuters Exclusive

Payment delays dent India's flagship health, AIDS programmes  Full Article 

Jim O’Neill Interview

Jim O’Neill Interview

'India can become world’s fifth-largest economy by decade’s end'  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Ola's Expansion Drive

Ola's Expansion Drive

Taxi group Ola steps up expansion drive  Full Article 

Sahara Saga

Sahara Saga

Sahara's Grosvenor House hotel in London put up for sale   Full Article 

Suzlon Energy

Suzlon Energy

Suzlon expects to turn profitable in fiscal 2016: chairman   Full Article 

Beef Trade

Beef Trade

Maharashtra clamps down on beef trade through new act  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage