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Sony ( SONY ) taps bankers for sale of cellular chipsets business

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Interest expected from financial sponsors, semiconductor

players

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Sony ( SONY ) increasing focus on entertainment business

By Milana Vinn

NEW YORK, July 23 (Reuters) - Sony Group ( SONY ) is

exploring a sale of its unit that provides cellular chipsets for

connected devices, as the group shifts its focus to the

entertainment segment, according to three people familiar with

the matter.

The Japanese technology and entertainment conglomerate is

working with investment bankers on the sale of Sony

Semiconductor Israel, which is currently in the early stages,

the sources said.

It generates about $80 million in annual recurring revenue

and is expected to be valued at close to $300 million in any

deal, the sources said.

The business is expected to attract interest from financial

sponsors and semiconductor industry players, added the sources.

Sony ( SONY ) declined to comment. The sources requested anonymity as

the matter is not public.

Formerly called Altair Semiconductor, Sony Semiconductor

Israel provides cellular chipsets for connected devices such as

wearables, smart meters, and home appliances.

Sony ( SONY ) acquired the business in 2016 for $212 million.

Sony ( SONY ) has been increasing its focus on games, movies, and

music, with more than 60% of its profit coming from

entertainment last year.

As part of its portfolio reshaping, Sony ( SONY ) is preparing for a

partial spinoff and direct listing of its financial services arm

later this year.

A leading maker of image sensors, Sony ( SONY ) said in April it is

considering options for its chips division, including bringing

in investment partners or adopting a fab-light strategy.