Japanese media: Sony wants to place Vaio branch in joint venture with Lenovo

Sony and Lenovo are negotiating a partnership that would house the loss-making PC division of Sony. That reports the Japanese public broadcaster. Sony says the message is incorrect.

The negotiations would not be about a takeover of the PC branch, but about the establishment of a joint venture, reports the Japanese public broadcaster NHK. Sony’s main aim would be to reduce production costs and take advantage of Lenovo’s ability to source parts cheaply on a large scale. Sony would intend to continue using the Vaio brand name.

Sony’s Vaio branch for desktops and laptops has been losing money for some time, partly due to the sharp decline in PC sales worldwide. Lenovo, on the other hand, is one of the few companies that has recorded growth from PC sales. Sony admits it is looking at multiple options regarding the future of its PC business, but reports about the possible collaboration with Lenovo called the company “inaccurate” to Reuters.

Lenovo has been expanding rapidly lately through acquisitions. The Chinese company recently acquired IBM’s x86 server arm and Google’s Motorola Mobility.