Sources told Bloomberg that Sony Corp is looking into the possibility of selling its Gracenote audio recognition software business as it seeks to divest units to concentrate on fewer products, Bloomberg reported. The two people knowledgeable about the matter said it had already hired Frank Quattrone's Qatalyst Partners to explore a sale.
One of the people said the unit posts annual revenue from $100 million to $200 million. Gracenote is also in discussions with private equity companies as it plans to become an independent firm, the report said. The person said that Sony may reach a deal be the end of 2013. Gracenote was acquired by Sony in 2008 for a price tag of $260 million.
Gracenote is known for making software that enables Apple Inc's iTunes to immediately identify songs when tracks from a compact disc are transferred to a computer. It has also grown to power many music applications on smartphone. The division is also integrating its software into televisions that will enable marketers to learn what a person is watching and target demographics-based ads. The sources did not say what the price tag for the service is or who the potential buyers are.
Another source briefed on the matter also said that Sony may opt to retain a stake in Gracenote in the event of a deal. Gracenote's technology is part of a lot of Sony's products like smartphones and televisions.
The report said the potential sale which could still fall through comes at a time when Sony CEO Kazuo Hirai is trying to turn the struggling consumer electronics firm around by unifying its sprawling businesses, streamlining operations and cutting costs. To a large extent, the Japanese firm missed the transition to mobile computing, a market now dominated by Samsung Electronics Co, Apple and Google Inc and posted a quarterly loss in October, the report said.
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