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06-08-2013, 09:11 AM
Sony is considering a proposal from a leading shareholder that it should sell off up to 20 per cent of its entertainment division.
Hedge fund Third Point, which owns a 6.5 per cent stake in Sony, suggested last week that the company should sell as much as a fifth of its entertainment units, including its US-based film and television studio and its music business, in an initial public offering
In a letter hand-delivered to Sony CEO Kaz Hirai last week, US billionaire and Third Point founder Daniel Loeb said such a move would help raise cash to revitalise the company's electronics unit.
In response, Hirai told reporters (via Bloomberg): "It's only a start. It's important that the board will discuss this and come to a decision that represents Sony's stance."
Following the news, Sony's shares rose 5.9 per cent in Wednesday trading in Tokyo, the BBC reports.
Earlier this month, Sony Corporation swung to an annual profit for the first time in five years, recording net income of £280m ($435m) compared to a loss of £3 billion a year earlier.
However, the company's games business struggled, with the PlayStation business posting a notable drop in sales and operating income for the financial year ended March 31.
Source: http://www.computerandvideogames.com/408495/sony-to-consider-spinning-off-entertainment-division/
Hedge fund Third Point, which owns a 6.5 per cent stake in Sony, suggested last week that the company should sell as much as a fifth of its entertainment units, including its US-based film and television studio and its music business, in an initial public offering
In a letter hand-delivered to Sony CEO Kaz Hirai last week, US billionaire and Third Point founder Daniel Loeb said such a move would help raise cash to revitalise the company's electronics unit.
In response, Hirai told reporters (via Bloomberg): "It's only a start. It's important that the board will discuss this and come to a decision that represents Sony's stance."
Following the news, Sony's shares rose 5.9 per cent in Wednesday trading in Tokyo, the BBC reports.
Earlier this month, Sony Corporation swung to an annual profit for the first time in five years, recording net income of £280m ($435m) compared to a loss of £3 billion a year earlier.
However, the company's games business struggled, with the PlayStation business posting a notable drop in sales and operating income for the financial year ended March 31.
Source: http://www.computerandvideogames.com/408495/sony-to-consider-spinning-off-entertainment-division/