Published in News

Sony says no to spin off

by on06 August 2013

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.

Rate this item
(0 votes)

Read more about: