Third Point Hedge Fund Increases Stake In Sony And Pushes To Spin Off Music And Movie Business
June 18, 2013 at 6:02 AM (PT)
REUTERS reports, "NEW YORK-based hedge fund THIRD POINT said it has raised its stake in SONY CORP and urged the JAPANESE company to create an independent board to run a partially spun-off entertainment arm with SONY's CEO, KAZUO HIRAI, as its chairman."
Last month (NET NEWS 5/15), DANIEL LOEB, who heads THIRD POINT, requested that SONY spin off up to 20% of its entertainment division in an IPO. That move would affect SONY's music and movie business, and THIRD POINT claims the move could boost SONY's share price by as much as 60%.
REUTERS notes, "in a second letter to HIRAI on TUESDAY (6/18), in which he again offered to put a THIRD POINT representative on SONY's board, LOEB added to his proposal by suggesting that SONY adopt 'a semi-independent governance structure'. LOEB argues that the electronics maker has failed to find the synergies that the shift into entertainment had promised when it bought COLUMBIA PICTURES 24 years ago."
SONY Pres./Commons Asset Management TETSURO II said, "A choice to separate the entertainment unit could be a reasonable idea. SONY may have to make a decision whether to keep the business or to sell off."