Daniel Loeb Calls for a Breakup of Sony
Someone has finally called for Sony Corp. (NYSE: SNE) to rid itself of the one division it owns that has no relationship to consumer electronics. The company's movie studio is a legacy from a time when Sony hoped to own content and the means by which it is delivered to people via consumer electronics. Other major studios are owned by large media conglomerates, which makes sense because of the huge stakes they have in programming.
The idea that Sony should part with its studios is not new, but it may have renewed impetus. The New York Times reports on the call for Sony to break up:
An American hedge fund billionaire known for starting big fights has called for a breakup of the entertainment and electronic colossus Sony, according to people briefed on the matter, possibly setting off a battle that could roil Japan's famously staid corporate culture.
The call, which came Tuesday, will most likely be viewed by government officials and corporate leaders in Tokyo as a shot across the bow from Wall Street, just as Western investors begin piling into Japanese stocks.
The hedge fund manager, Daniel S. Loeb, is pressing Sony into spinning off part of its entertainment arm, which includes one of the biggest film studios in Hollywood and one of the largest music labels in the world, responsible for movies like "Skyfall" and artists like Taylor Swift.
Filed under: 24/7 Wall St. Wire, Activist Investor, Consumer Electronics Tagged: featured, SNE