In September 1945, Ibuka founded a radio repair shop in the bombed out
Shirokiya Department Store in
Nihonbashi, Tokyo. Morita saw a newspaper article about Ibuka's new venture and, after some correspondence, chose to join him in Tokyo. With funding from Morita's father, they co-founded
Tokyo Tsushin Kogyo Kabushiki Kaisha (Tokyo Telecommunications Engineering Corporation, the forerunner of Sony Corporation) in 1946 with about 20 employees and initial capital of ¥190,000. In 1949, the company developed
magnetic recording tape and, in 1950, sold the first
tape recorder in Japan. Ibuka was instrumental in securing the licensing of
transistor technology from
Bell Labs to Sony in the 1950s, thus making Sony one of the first companies to apply transistor technology to non-military uses. In 1957, the company produced a pocket-sized radio (the first to be fully transistorized), and in 1958, Morita and Ibuka decided to rename their company
Sony (derived from "sonus"—
Latin for "sound"—and "sonny", a then-common American expression). Morita was an advocate for all the products made by Sony. However, since the radio was slightly too big to fit in a shirt pocket, Morita made his employees wear shirts with slightly larger pockets to give the radio a "pocket sized" appearance. to
São Paulo governor
Laudo Natel in 1972 Morita founded Sony Corporation of America (SONAM, currently abbreviated as SCA) in 1960. In the process, he was struck by the mobility of employees between American companies, which was unheard of in Japan at that time. Morita became president of Sony in 1971, taking over from Ibuka who had served from 1950 to 1971. In 1975, Sony released the first
Betamax home
videocassette recorder, a year before the
VHS format came out. Ibuka retired in 1976 In that year, a 3.5-inch
floppy disk structure was introduced by Sony, and it soon became the
defacto standard. In 1984, Sony launched the
Discman series, which extended their Walkman brand to portable CD products. Under the vision of Morita, the company aggressively expanded into new businesses. Twenty years after setting up a joint venture with CBS Records in Japan, Sony bought CBS Records Group which consisted of
Columbia Records,
Epic Records and other CBS labels. In 1989, they acquired Columbia Pictures Entertainment (
Columbia Pictures,
TriStar Pictures and others). Morita suffered a
cerebral hemorrhage in 1993 while playing tennis and on November 25, 1994, stepped down as Sony chairman to be succeeded by Ohga. ==Other affiliations==