Tells Loeb to sling his hook
Sony have rejected a proposal from activist shareholder Daniel Loeb to partially spin off its entertainment business.
Sony said there is still mileage in its decades-old marriage of content and hardware and promised more disclosure in its entertainment operations. Loeb’s Third Point hedge fund tried to convince the company to sell as much as one-fifth of its money-making entertainment arm to free up cash to revive the electronics business. Sony would then profit from having a IPO of the new business and own a share in the new business.
Sony CEO Kazuo Hirai said in a letter to Loeb that Sony’s board of directors had unanimously concluded that continuing to own 100 percent of its entertainment business made more sense.
