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.