Monday, August 5, 2013

Sony rejects investor proposal to spin off entertainment business

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Sony CEO Kazuo Hirai has written an open letter rejecting billionaire investor Daniel Loeb's proposal that the company sell part of its entertainment business. Loeb, whose Third Point LLC owns about 7 percent of Sony, had pressed the Japanese giant to offer between 15 and 20 percent of Sony Entertainment to shareholders; the investor believed this could boost stock price by up to 60 percent.


"Continuing to own 100% of our entertainment business is fundamental to Sony's success."


In a letter today, however, Hirai says that he and Sony's board "strongly believe that continuing to own 100% of our entertainment business is fundamental to Sony's success and that neither a subscription rights offering nor a public

offering is consistent with...


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via The Verge - All Posts http://www.theverge.com/2013/8/5/4592330/sony-ceo-kaz-hirai-rejects-third-point-entertainment-proposal

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