Reuters: Technology News: Sony rejects Loeb's proposal to spin off entertainment unit

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Sony rejects Loeb's proposal to spin off entertainment unit Aug 6th 2013, 01:26 Tweet Share this Email Print Related News Sony falls after it rejects Loeb's entertainment spin-off proposal 8:09pm EDT Analysis & Opinion Herbastrife Dan Loeb's Yahoo exit hurts investors twice over Related Topics Tech » Inflows Outflows » The logo of Sony Corp. is seen at an electronics store in Tokyo May 9, 2013. Credit: Reuters/Toru Hanai TOKYO | Mon Aug 5, 2013 8:09pm EDT TOKYO (Reuters) - Japan's Sony Corp rejected on Tuesday a proposal from activist shareholder Daniel Loeb to spin off a part of the electronics company's entertainment business. Loeb's Third Point LLC hedge fund proposed in May that Sony sell as much as a fifth of its money-making entertainment arm -- movies, TV and music -- to free up cash to revive the electronics business. "Sony's board of directors has unanimously concluded that continuing to own 100 percent of our entertainment business is the best path forward and is integral to Sony's strategy," the company said in a letter to Third Point. Loeb, who owns around 7 percent of Sony through shares and cash-settled swaps, has called the entertainment division poorly managed. Sony's board was expected to reject Loeb's proposals, the Nikkei newspaper said last week, with directors arguing Sony could compete better by maintaining ties with the entertainment arm of the business. Sony has long been a pillar of Japan Inc and a pioneer in the electronics industry. But it has lost market share - and its innovative edge - to aggressive foreign rivals such as South Korea's Samsung Electronics Co Ltd and Apple Inc as they churn out blockbuster products. (Reporting by Edwina Gibbs and Dominic Lau; Editing by Dean Yates) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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