Sony Selling Cell to Toshiba for $100B, but keeps management role...
So why don't they want to keep that magical processor that powers the PS3? Amazing processor. Incredible for scientific applications. Now they're going to sell it for PCs and computing clusters. But Sony doesn't know jack about marketing processors, which makes the "Sony as managers" clause very bothersome. -Auri
TOKYO (AP) - Sony Corp. will sell its Cell microprocessor
and advanced chip operations to Toshiba Corp. for nearly 100 billion yen ($870
million) next year, a news report said Saturday.
Sony will effectively stop making advanced chips, and
instead focus on audiovisual equipment, according to a report in Japan's
largest business daily, the Nikkei.
The deal will likely include manufacturing lines for the
Cell, the microprocessor Sony codeveloped with Toshiba and IBM Corp. for its
PlayStation 3 game console, as well as image-processing chips for game consoles
and camcorders, according to the report.
At the same time, Sony and Toshiba will establish a joint
venture that will use these lines to manufacture system chips, the report said.
Although Toshiba will take a majority stake in the
venture, Sony will be the principal buyer of the chips and will have a say in
the company's management, the report said. Its game unit, Sony Computer
Entertainment Inc., could take a stake as well, it said.
The deal, expected in several months, will be worth
nearly 100 billion yen, the report said.
Though Toshiba is Japan's largest chipmaker, raking in
about 1.3 trillion yen ($11.3 billion) in sales in fiscal 2006 mainly through
flash memory sales, it ranks third in advanced system chips, according to the
Nikkei.
Through the planned purchase, Toshiba hopes to boost
sales and catch up with foreign chip making rivals such as Intel Corp. and
South Korea's Samsung Electronics Co., the report said.
Sony and Toshiba officials were not immediately available
for comment.
Source: Associated Press