Japanese electronics giant Sony corporation, have come to an understanding with Japan Industrial Partners, to sell the VAIO brand.
By selling off their PC business, Sony is believed to be focusing on their Smartphones, Tablets and TVs’.
Both parties are interested in reaching a definitive agreement by the end of March 2014, i.e this fiscal year. And the deal is expected to be completed by July 1, 2014.
Even though the amount of the deal has not been announced, Nikkei reports that it could be worth 50 billion yen (or $490 Million.)
JIP’s new company will be based at the Nagano Technology Site,which is where Sony operates it’s PC business. Sony is expected to layoff 5000 employees across the Globe, but JIP will retain 250 to 300 of the employees who are employed in Sony’s PC operations. While JIP will invest and manage the company, Sony will also invest 5% of the Capital to support the launch and the takeover. This is more likely a sign of Goodwill.
Sony has assured that they will provide support to customers after their PC business has been withdrawn from the market, but the manufacturing and sales of PCs will be stopped after Spring 2014. This is part of the sale agreement with JIP. Sony will also stop other related operations such as planning, design and development of PC products.
American Technology Research group Gartner, had revealed that the PC market had shrunk by 10% in 2013.
And in my opinion, the rise of tablet and smart phone users can be a huge hurdle for PC manufacturers too. Unless they innovate and do so quickly, the PC market is bound to collapse sooner or later.