Sony Corporation-Is the Sum Greater Than the Parts?

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In 2013, Third Point LLC, a hedge fund based in New York, became the largest owner of Sony Corporation (Sony) shares. In May 2013, Daniel Loeb, CEO of Third Point, sent a letter to Sony President and CEO Kazuo Hirai with a proposal for restructuring Sony. The proposal included two main items: (1) Take public a 15-20% stake in Sony Entertainment, and (2) Focus on industry-leading businesses to bring growth to Sony Electronics. Sony replied that it was not interested in selling the entertainment division. According to a Sony spokesperson, "The entertainment businesses are important contributors to Sony's growth and are not for sale. We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy."
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