Featured Articles

Snapdragon 400 is Qualcomm’s SoC for watches, wearables

Snapdragon 400 is Qualcomm’s SoC for watches, wearables

We wanted to learn a bit more about Qualcomm's plans for wearables and it turns out that the company believes its…

More...
Qualcomm sampling 20nm Snapdragon 810

Qualcomm sampling 20nm Snapdragon 810

We had a chance to talk to Michelle Leyden-Li, Senior Director of Marketing, QCT at Qualcomm and get an update on…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Nvidia GTX 980 reviewed

Nvidia GTX 980 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
PowerColor TurboDuo R9 285 reviewed

PowerColor TurboDuo R9 285 reviewed

Today we will take a look at the PowerColor TurboDuo Radeon R9 285. The card is based on AMD’s new…

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

 

Facebook activity

Latest Commented Articles

Recent Comments