Sony Rejects Investor Call To Sell Music Division
Yesterday, activist investor and hedge fund manager Dan Loeb called for Sony to sell 20% of its music, film and entertainment division. Third Point, the fund managed by Loeb, owns 6.5% of Sony stoking, making it one of the company's largest shareholders with a stake of $1.1 billion.
"To maximize Sony's overall success, we believe the company should change the structure of its ownership of Sony Entertainment," wrote Loeb. "Doing so will strengthen Sony by reducing its burdensome debt, thereby providing additional resources and capital to focus on revitalizing the resurgent Sony Electronics."
Today the company reject Loeb's assertion that it would be good for the company and investors:
"Sony welcomes investment in the company. We are
focused on creating shareholder value by executing on our plan to
revitalize and grow the electronics business, while further
strengthening the stable business foundations of the entertainment and
financial service businesses."
