Sony Rejects offer to Spin Off Entertainment Business

Sony Tells Billionaire Daniel Loeb To Spin Off with his Offer.

Maya Mayfield
August 6, 2013

No Spin off for Sony

After a Unanimous decision. The Board of Directors at Sony have voted to keep 100 percent of the companies holdings in-house. This came after an offer in May by Multi Billionaire and Business Investor Daniel S. Loeb suggested a spin off from the entertainment business.
"Owning 100 percent of the companies entertainment business is fundamental to Sony's continued development and success."

After the Unanimous decision from Sony's board of directors. A letter was sent out this week to Daniel S. Loeb's Third Point LLC, explaining why his idea was voted against. Sony also mentioned that Third Point LLC's public offer was not consistent to the company's plans for future sustained growth, profitability and share-holder value.
In the letter, Sony said to Third Point LLC that due to an increase in consumers using mobile devices for entertainment. Their shareholders can benefit from these trends, instead of a portion of the assets. In addition to that, having full control of its entertainment business, helps to push internal collaboration, facilitates synergies, and helps the company to be more agile to the changing markets.
Sony's President and CEO Kazua Hirai said in a statement, "We are happy with our growth and development as we continue on our One Sony strategy. Though changes have been made during my time as President. I am confident we are heading in the right direction."
To read the entire letter to Loeb, and Third Point LLC, click here.
Daniel S. Loeb, owns a six percent stake in Sony, worth around $1.1billion dollars. In May he proposed that the company sell off 20 percent of its assets to the public. Stating that this would help Sony's electronic sector thrive.