In what investors have hailed as the most recent phase of the company’s restructuring, Sony will unveil its finance arm’s growth strategy on Thursday in preparation for a spinoff.

Once renowned for its home electronics, the Japanese giant has won praise for refocusing on entertainment, which now accounts for almost 60% of sales. Just four years after acquiring complete control of the company in a $3.7 billion purchase, the financial spin-off illustrates the convoluted route Sony has followed. At an investor day on Thursday, Sony executives will discuss the spin-off and the finance unit’s growth strategy. 

The business intends to pay out dividends in kind to stockholders on little more than 80% of its shares in Sony Financial Group, which consists of banking and insurance. In addition to being the first direct listing scheduled for September 29 in over 20 years, it is the first partial spin-off in Japan to benefit from a 2023 tax adjustment. A direct listing is when a business lists on the stock exchange without doing the customary IPO.

In response to inquiries from Reuters, Sony stated that the spin-off will assist investors in understanding their goals by separating the balance sheets of the financial industry, which grows by amassing money, and the non-financial businesses, which aim for capital and asset efficiency. The business intends to pay out dividends in kind to stockholders on little more than 80% of its shares in Sony Financial Group, which consists of banking and insurance.

In addition to being the first direct listing scheduled for September 29 in over 20 years, it is the first partial spin-off in Japan to benefit from a 2023 tax adjustment.

A direct listing is when a business lists on the stock exchange without doing the customary IPO. In response to inquiries from Reuters, Sony stated that the spin-off will assist investors in understanding their goals by separating the balance sheets of the financial industry, which grows by amassing money, and the non-financial businesses, which aim for capital and asset efficiency.

Isn’t that entertainment?

The Japanese corporation wants to stay at the top of the semiconductor market for image sensors, which are used in smartphones, and increase its footprint in the entertainment industry, which includes games, movies, and music. This month, Sony announced that, after accounting for 100 billion yen ($701.16 million) damage from U.S. President Donald Trump’s trade war, its operating profit for this fiscal year is flat.

In the three years leading up to March 2027, the company, which reported record operational cash flow last year, has committed 1.7 trillion yen to capital investments and 1.8 trillion yen to strategic initiatives.

With Japan as one target, Sony is often perceived as seeking to enter into agreements to increase its access to intellectual property in order to support its entertainment sector.

Along with the Crunchyroll streaming service, which is a part of the pictures section, and the planning business Aniplex, which is under its Japan music branch, Sony is a rising force in anime. Despite its rapid growth, anime is still not as large as Sony’s game, film, and music divisions, and the corporation does not publicly disclose its earnings.