Japan’s Sony Corp yesterday rejected a proposal from activist shareholder Daniel Loeb to partially spin off its entertainment business, but the billionaire investor vowed to keep talking with the company and explore other options.
Sony said it could still squeeze synergies from its decades-old marriage of content and hardware, and promised more disclosure in its entertainment operations.
Loeb’s Third Point LLC hedge fund has waged a three-month campaign to convince the company to sell as much as one-fifth of its money-making entertainment arm — movies, TV and music — to free up cash to revive its 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,” Sony CEO Kazuo Hirai said in a letter to Loeb, which was released by the company.
Loeb had cast his proposal for a public offering of part of Sony’s entertainment business as consistent with Japanese Prime Minister Shinzo Abe’s drive to boost economic growth through structural reform, but a source familiar with the discussions said Sony’s decision reflected worries about listing a subsidiary, not resistance to corporate reform in Japan.
The company does not need the cash from a subsidiary initial public offering, which would have created possible conflicts and cumbersome requirements because of the type of listing, he added.
“I can’t believe this is a statement on Japanese companies not being willing to be flexible,” the source said.
Loeb, who owns about 7 percent of Sony through shares and cash-settled swaps, said he was disappointed with the decision, but acknowledged that Sony was showing a greater commitment to transparency.
He also made it clear that the saga was not over.
“Third Point looks forward to an ongoing dialogue with management and intends to explore further options to create value for Sony shareholders,” the fund said in a statement.
However, sources familiar with the situation were skeptical about the prospects for a proxy fight taken directly to shareholders, given the history of such efforts failing in Japan.
Sony has long been a pillar of Japan Inc and a pioneer in the electronics industry. However, it has lost market share — and its innovative edge — to aggressive foreign rivals such as South Korea’s Samsung Electronics Co and Apple Inc.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS