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

Tuesday, 14th May 2013 16:45 GMT By Stephany Nunneley

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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22 Comments

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  1. MidlifeAxe

    ‘Sony Entertainment is on the market.’

    They are selling it?

    #1 1 year ago
  2. Beta

    I’m not criticising, but is there supposed to be a “not” in that last sentence? ;)

    #2 1 year ago
  3. MidlifeAxe

    @2 Makes more sense! I was thinking “Did I miss a memo?”, haha.

    #3 1 year ago
  4. Gheritt White

    ^This.

    #4 1 year ago
  5. Beta

    I was rather surprised myself for a moment XD

    #5 1 year ago
  6. Stephany Nunneley

    Yes yes yes. I fixed it. You guys only interact with me when I screw up. It’s giving me a complex. :*(

    #6 1 year ago
  7. shogunknight

    wait, the largest shareholder has around 6.5%? There must be a lot of shareholders then

    #7 1 year ago
  8. Beta

    I genuinely didn’t offer that up as a criticism Steph :) Just wanted some clarification.

    #8 1 year ago
  9. Ireland Michael

    @6 Poor Steph. *hugs*

    #9 1 year ago
  10. No_PUDding

    I think we can all agree in saying, we think you’re an incredibly important pillar of this site.

    Do not get a complex.

    You’ve been here since (pretty much) the start, and no offense to the others, but as far as I am concerned it was you, Johnny and Pat that made this site great with your content, diligence and personalities.

    In all honesty your contribution is incredibly important to my readership. I doubt I’d feel as inclined to comment/visit if all the personlity had dried up here.

    #10 1 year ago
  11. Beta

    @10 This. I’ll try to interact with you more in the future Steph :)

    #11 1 year ago
  12. Gheritt White

    ^Hear, hear.

    Now wouldja PLEASE stop fucking up, Steph?!

    (I kid, I kid…)

    #12 1 year ago
  13. Stephany Nunneley

    Now stop it you all are making me cry for a different reason. <3 <3 <3

    @ all xxxxxxxxxxooooooooooooo

    #13 1 year ago
  14. Beta

    Group hug. “Kum bay ya”.. ;)

    #14 1 year ago
  15. G1GAHURTZ

    I like it when Steph tells us stories about horses.

    #15 1 year ago
  16. No_PUDding

    And juvenile crows!

    And that pigeon that befriended her as well. But I think she just made that one up. You can easily photoshop a pigeon :P

    #16 1 year ago
  17. Gheritt White

    I just like the fact she reads comics. Comics FTW.

    #17 1 year ago
  18. Hunam

    I still miss Steph’s weekend MMO round up. Or well, Steph talking about other MMO’s for a paragraph and then musing on the LOTRO changes :)

    It seemed like it was more for you than us, but I loved reading it!

    #18 1 year ago
  19. Gheritt White

    I miss the MMO round-up as well!

    #19 1 year ago
  20. Gekidami

    Posted this in wrong place. :S

    #20 1 year ago
  21. SplatteredHouse

    @18/19 I miss Shorts :( The title of one set/piece (?) appeared on the “previously from VG247″ bit below an article, and I got all nostalgic for their cuddly, assured, yet completely random nature.

    #21 1 year ago
  22. sg1974

    “Sony’s biggest investor calls for disposals which will return billions in dividends to his corporate balance sheet”.

    There. Fixed for you. ;o)

    Qui bono? as the Romans said.

    #22 1 year ago