Sony says no to Loeb proposal of partial sell of entertainment unit
The board of directors of Sony Corp said no to the proposal of Daniel Loeb to partially sell its entertainment business. Daniel Loeb, who owns about 7% of Sony's shares, runs the hedge fund Third Point Llc. For three months, he urged the Japanese company to sell one-fifth of its entertainment arm to generate cash to resurrect Sonny's electronics business.
In a letter to Loeb, Kazuo Hirai, the CEO of Sony Corp, wrote that the board decided to keep its movies, TV and music arm. "Sony's board of directors has unanimously concluded that continuing to own 100 percent of our entertainment business is the best path forward and is integral to Sony's strategy," Hirai said. Loeb, however, said that his fight is not yet over. The activisit investor said he will continue to explore more options. "Third Point looks forward to an ongoing dialogue with management and intends to explore further options to create value for Sony shareholders," Loeb's firm said in a statement.