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Sony's biggest investor calls for division between Sony Entertainment and Sony Electronics  

Daniel Loeb, CEO of Third Point, LLC, Sony's largest investor which controls over $1.1 billion in shares, around 6.5%, wants the firm to split its Sony Entertainment business from Sony Electronics.

According to report on The New York Times, the hedge fund boss hand-delivered a letter to Sony CEO Kaz Hirai calling for a "partial spin-off" so the divisions would stop "obscuring the other's true worth."

"Like many conglomerates we have invested in previously, Sony has two strong businesses facing different challenges side by side, each obscuring the other's true worth," Loeb stated.

Loeb believes current Sony investors should own Sony Entertainment more directly, with m subscription rights "rather than holding a traditional spin-off or public offering," according to GI International.

Such a scheme would provide Sony with more capital and provide shareholders with more economic interests which are protected.

"Beyond Third Point's willingness to help facilitate a public offering for Sony Entertainment, we offer our assistance to implement our proposal and would gladly accept a seat on Sony's Board of Directors," Loeb said in his letter.

A Sony representative stated that while it welcomes investments and dialogue with shareholders, Sony Entertainment isn't on the market.

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Stephany Nunneley-Jackson

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Stephany is VG247’s News Editor, with 22 years experience (with 15 of them at VG247). With a brain that lacks adhesive ducks, the ill-tempered, chaotic neutral fembot does her best to bring you the most interesting gaming news. She is also unofficially the site’s Lord of the Rings/Elder Scrolls Editor.

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