Hedge fund manager Dan Loeb whose firm Third Point has quietly
increased stake in Sony to 6.5 per cent wants the Japanese
consumer electronics and media conglomerate to spin off its
travelled to Japan and delivered a letter. He wants Sony spin
off its Entertainment division which is movies, television
and music and its financial services division. This way it
can focus on its electronics business.
reports add having had a two-hour meeting in Tokyo with the
senior management of the company. He then gave the CEO a letter.
He has estimated that a partial spinoff of the entertainment
business could bolster the company's share price by as much
as 60 per cent.
spokesman for Sony 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.
look forward to continuing constructive dialogue with our
shareholders as we pursue our strategy."
strategy revolves around activism. . Loeb recently was in
the news for forcing former Yahoo CEO Scott Thompson to
resign over inaccuracies on his resume. He then helped install
Marissa Mayer as CEO.
issue with Sony could turn into a fight. If Sony resists
then Loeb could become more aggressive and drop politeness.
On the other hand if Sony quietly agrees then it could be
seen as bowing to the requests of a shareholder.