Featured Articles

IHS teardown reveals Galaxy S5 BOM

IHS teardown reveals Galaxy S5 BOM

Research firm IHS got hold of Samsung’s new flagship smartphone and took it apart to the last bolt to figure out…

More...
Galaxy S5, HTC One M8 available selling well

Galaxy S5, HTC One M8 available selling well

Samsung’s Galaxy S5 has finally gone on sale and it can be yours for €699, which is quite a lot of…

More...
Intel lists Haswell refresh parts

Intel lists Haswell refresh parts

Intel has added a load of Haswell refresh parts to its official price list and there really aren’t any surprises to…

More...
Respawn confirms Titanfall DLC for May

Respawn confirms Titanfall DLC for May

During his appearance at PAX East panel and confirmed on Twitter, Titanfall developer Respawn confirmed that the first DLC pack for…

More...
KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 gained a lot of overclocking experience with the GTX 780 Hall of Fame (HOF), which we had a chance to…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 15 May 2013 09:52

Sony needs to spin off its entertainment arm

Written by Nick Farrell



Wall Street Fund investor calls for change

Hedge fund investor Daniel Loeb called on Sony to spin off its lucrative entertainment arm, in what is being seen as a clash between his activist Wall Street fund and management and Japanese electronics maker.

Loeb said his Third Point hedge fund had accumulated a little more than six percent of Sony's shares making it the largest stakeholder. Loeb personally delivered a note to CEO Kazuo Hirai at Sony's headquarters saying that Third Point was willing to put up $1.97 billion to support an initial public offering of up to a fifth of the entertainment arm, which includes one of Hollywood's top film studios and a leading music label.

Loeb has a record of clashing with corporate executives over strategy, including engineering a successful boardroom shake-up at Yahoo last year. Loeb blessed Hirai's attempts to revive Sony, but said the problems of the company's electronics business distracted from the value of US-based Sony Entertainment, an asset he called a "hidden gem".

If Sony spun off its entertainment unit it could add another 60 percent to Sony's stock price. Sony has sold off real estate and other assets to cover losses on consumer electronics, but Hirai sees the entertainment business as core to the company's long-held vision of marrying content and hardware.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

To be able to post comments please log-in with Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments