The activist investor may not be done agitating
Daniel Loeb is nothing if not persistent.
On Monday, Sony Corp. politely rejected its largest shareholder's suggestions that it spin-off its entertainment assets, but Loeb's hedge fund Third Point Management signaled that it may not have given up on the idea entirely.
"Third Point looks forward to an ongoing dialogue with management and intends to explore further options to create value for Sony shareholders," Third Point said in a statement.
According to Bloomberg, the New York-based fund went on to add that Sony had recognized that there were "performance issues" in its movie and television division.
“A renewed focus on profitability and better margins should reduce bureaucracy and thus free up resources," Third Point said.
The board unanimously turned down Loeb's proposal that it should spin-off its entertainment assets into a separate public company, and in a letter signed by Sony Corporation President and CEO Kazuo Hirai said that owning 100 percent of its movie and television studio is "fundamental to Sony's success."
It has been a difficult summer for Sony at the box office, as big-budget films like "After Earth" and "White House Down" have failed to capture audiences' attention.
To that end, Sony's board said it would provide additional disclosures regarding its entertainment businesses for the second quarter of the current fiscal year.
"While we believe our theatrical marketing costs have been and continue to be in line with our competitors, and that our margins are generally comparable to some other major studios, we recognize that our margins should be higher," the letter reads.
Loeb’s Third Point Management is Sony's largest shareholder and owns a 6.5 percent stake in the company. That holding is valued at $1.1 billion.
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