Sony Board Discussing a Shareholder's Proposal That the Company Spin Off Its Entertainment Assets Bloomberg
"Sony Corp. directors are discussing whether to adopt billionaire Daniel Loeb’s proposal for an initial public offering of its entertainment business, a week after the TV maker said the assets weren’t for sale," reports Bloomberg.
The story continues, "Sony has jumped 22 percent since Third Point LLC’s Loeb told [Sony CEO Kazuo] Hirai that partially spinning off the entertainment assets would bring a higher valuation and raise cash for the company, whose movie studio topped the U.S. box office last year. Film and financial services earnings have helped the Tokyo-based company counter nine straight annual losses from making TVs."
Of the discussions now taking place among the directors, Hirai said, "It’s only a start. It’s important that the board will discuss this and come to a decision that represents Sony’s stance,” the story reports.
The article adds, "Hirai, who started his career at Sony’s music division, previously said he didn’t plan to sell the entertainment assets as he builds services linking Xperia smartphones, PlayStation devices and Bravia TVs with Sony movies and music."