Sony is a "red-headed stepchild" - Loeb
Famous hedge fund player Dan Loeb expressed his irritation with giant technology and entertainment company Sony today. The investor has been vocal in his suggestion for creating a spin-off of Sony's entertainment division.
Loeb, one of the most prominent names in the hedge fund industry, acquired more than 6% in the Japanese electronics manufacturer.
"Keeping entertainment underexposed, undervalued and underperforming is not a strategy for success," stated Loeb in a letter he sent to investors with his fund called Third Point. He explained that the division's revenue slumped compared to its rivals. He cited the company's recent ventures in the film industry which tanked such as "After Earth" and "White House Down".
Loeb went on to call Sony a "red-headed stepchild."
The sharp-mouthed investor criticized Sony's management, particularly its entertainment arm, saying the sector deals with a "famously bloated corporate structure, generous perk packages, high salaries for underperforming senior executives, and marketing budgets that do not seem to be in line with any sense of return on capital invested."
Loeb's Third Point was instrumental in the changes made in the past couple of years in in rescusitating search giant Yahoo culminating in the assumption of CEO duties by Marissa Meyer.\ for the company.
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