Skip to comments.Sony to mull Third Pointís revival plan
Posted on 06/20/2013 9:13:12 PM PDT by TexGrill
Sony Corp. needs more time to study a proposal from a U.S. hedge fund that wants the struggling electronics giant to sell stakes in the entertainment unit to help propel its nascent revival, its chief told shareholders Thursday.
Sony Chief Executive Officer Kazuo Hirai was speaking to a Tokyo hall packed with thousands of investors for its annual general shareholders meeting, where the proposal from Third Point, a hedge fund led by activist investor and billionaire Daniel Loeb, was high on peoples minds. It was the first question from the floor.
Hirai repeated his position that Sony takes the proposal seriously and will have it discussed by the board. But he ruled out a quick decision.
This is an important proposal that will influence the future of Sony, he said. This will take time, and we are not going to come to a conclusion for the sake of coming to a conclusion.
Loeb has proposed selling up to a 20 percent stake in Sonys relatively healthy movie, TV and music business.
He is proposing that the money raised from the sale be used to strengthen Sonys troubled electronics operations.
Third Point, one of Sonys top shareholders, said this week it has raised its stake to 6.9 percent from the 6.5 percent Loeb had said it owned when it first made the proposal last month.
Loeb is best known for instigating a mass shake-up at Yahoo Inc.
(Excerpt) Read more at japantimes.co.jp ...
Any company that gets in bed with a vampire should know up front that they will get bit, and investors who are upping their stakes at this point are trying very very hard to lose their money. Worst news this week? Microsoft effectively caving on most issues with gamers, taking away the massive advantage that the Playstation WAS going to enjoy.
Either way, Sony has been blowing through money like no tomorrow, and until they stop hemorrhaging money, there is little chance that a viable company will emerge out the other side.