Stockholder Wants To Break Up Sony
Posted on Wednesday, May 15 @ 08:58:04 Eastern by Alex_Osborn
Hedge fund manager Daniel S. Loeb is interested in breaking Sony into two divisions: One dedicated to electronics and the other focused on entertainment. Loeb owns 6.5% of Sony with total shares valued at $1.1 billion, which is certainly enough to give him some pull in the company.
According to a report from the New York Times, Loeb delivered his written request to Sony CEO Kaz Hirai while in Tokyo. The move would essentially “spin off part of its entertainment arm,” separating Sony Music Entertainment, Sony Pictures Entertainment, and Sony/ATV Music Publishing from Sony Computer Entertainment and its entire electronics line.
“Mr. Loeb said he believed that spinning off a portion of the entertainment business to Sony shareholders could sharpen the company’s focus and lead to higher profit margins, while helping to revive the core electronics business," the news outlet added. "He has also contemplated a spinoff or sale of other operations, including Sony’s insurance division, which accounted for much of the company’s profit last quarter.”
Do you think this would be a wise move for the company? Let us know in the comments below.
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