PlayStation 3 creator Sony has signed a preliminary agreement with Japanese media giant Toshiba, with Toshiba paying a reported $861 million to gain a 60 percent stake in Sony's Cell processor production line, following recent losses in the division.
The companies signed a preliminary agreement, under which Toshiba will purchase the manufacturing facilities that produce the Cell processors used in PlayStation 3 consoles.
According to Bloomberg, which
reported the agreement, Sony has invested more than 200 billion yen ($1.7 billion) in Cell development to date, creating a loss overall for Sony's chip unit in the last fiscal year.
The sale, whose price was reported at 100 billion yen ($861 million) by the Japanese Nikkei news organization, is likely part of a strategy for Sony to trim struggling areas of its business, thereby creating funds that can be channeled instead into televisions and digital cameras.
The two companies will complete the joint agreement by the end of March, ultimately resulting in a 60 percent stake in the Cell venture for Toshiba, with Sony holding onto the remainder. Financial terms of the agreement were not disclosed.
"The two companies will start discussing details of the plan including the price, which will be determined by the end of March next year," Sony spokesman Chisato Kitsukawa said in the companies' statement.
