Sony Swaps Kutaragi’s Shares News

Sony Corp today announced plans to buy Sony Computer Entertainment (SCE) head Ken Kutaragi’s stake in the games division, by offering him one million new shares valued at approximately 3.8 billion yen.<br><br>Sony Corp said that it had approached Kutaragi-san about the share-swap because of his growing role in the parent company. After Kutaragi’s 100 shares in SCE are swapped for one million shares in Sony Corp, the games division will become a wholly owned subsidiary. A Sony representative added that Kutaragi was not involved in negotiating the terms of the deal.<br><br>Kutaragi bought the shares in SCE for an undisclosed sum in 1996, marking the first time that any Sony official had purchased a stake in a company division that he or she headed.<br><br>Kutaragi has moved up the ranks in Sony Corp, recently being elected executive deputy president of the Japanese electronic giant, with many suggesting that his time at the top of Sony Corp will come soon.<br><br>The convergence between Sony Corp and SCE has been widely predicted in the past, and can be seen in the development of the PSX Home Entertainment Centre being released in Japan on December 13th. It should also mean that future formats under the Playstation brand will have more input from the electronic division.<br><br>The share swap will take place on April 1st 2004.