This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Business News Labels & Publishers
Investor calls on Sony to sell off entertainment business
By Andy Malt | Published on Wednesday 15 May 2013
The CEO of hedge fund Third Point, Daniel Loeb, has called on Sony Corp to sell off a slice of its entertainment business in a bid to boost profits, according to the New York Times. The US-based Sony entertainment group includes the Sony Music record company and the firm’s half of the Sony/ATV music publishing business.
Third Point has acquired a 6.5% stake in Sony Corp, making it one of the largest shareholders in the company. Wielding this new power, Loeb travelled to Tokyo at the weekend for meeting with the company’s execs, reportedly praising them for Sony Corp’s recent return to profit, but pushing for more to be done to maintain this trend and to revive its core electronics business.
According to the NYT, Loeb proposed that 15-20% of the entertainment business be sold to existing shareholders. He also said that Third Point would offer $2 billion to support such a move.
In a statement, Sony spokesperson Shiro Kambe said: “We are focused on creating shareholder value by executing on our plan to revitalise and grow the electronics business, while further strengthening the stable business foundations of the entertainment and financial services businesses. We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy”.
