Sony Agrees To Consider Spinning Off Entertainment Properties
Sony has agreed to consider a plan proposed by investor Dan Loeb and his Third Point hedge fund to spin off part of its entertainment division. While initially appearing to dismiss Loeb's proposal, Sony chief Kazuo Hirai appeared to do an about-face today. The proposal from Third Point, Dan Loeb is something that we should discuss thoroughly at a board meeting and then we'll decide Sony's stance, he said. Therefore, we are now going to start the discussion and we are still at the starting stage. Although Third Point holds $1.1 billion in Sony shares, its ability to influence Sony's board is uncertain. In reporting on Sony's decision to take up Loeb's proposal, Forbes magazine observed on its website today, While gadfly activists are common In America business ... [they are] decidedly unwelcome in Japan, where business remains a tight-lipped, tightly controlled affair. Sony shares, which have risen to 52-week highs since Loeb's proposal was disclosed last week, were seemingly unaffected by Hirai's announcement, rising just 1.22 percent at midday on the NYSE.