Is Sony Set To Be Split Up As Netflix & Amazon Circle?
Sony has struggled for more than a decade, now a major US hedge fund is building a stake in the Company that could end up being split up claim analysts.
Both Amazon and Netflix have gone after the Companies production and content creation business and have been rejected with insiders claiming that they are still interested in Sony assets.
Now Daniel Loeb’s hedge fund Third Point is building a stake in Sony who is losing hundreds of millions in the smartphone market after losing billions in the consumer electronics market in particular the TV market where the Company has resorted to buying LG or third-party panels wrapped around a Sony badge and processor.
Loeb’s hedge fund has about $US14.5 billion ($20 billion) in assets under management however it is not known how much they are investing in taking a position in Sony a move that could lead to a break up claim analysts.
According to Reuters, Third Point wants Sony to explore options for some of its business units, including its movie studio, which the hedge fund believes has attracted takeover interest from the likes of Amazon and Netflix in the past, the sources said.
The hedge fund also wants clarity on how the semiconductor and insurance divisions fit in with the rest of the company.
This is the second time in six years that the hedge fund has targeted the Japanese electronics maker who has been attempting a turnaround effort spearheaded by Kenichiro Yoshida, its chief executive who formerly served at its chief financial officer.
The maker of the iconic Walkman and Trinitron TV fell behind the likes of Apple in innovation after the release of the iPod in 2001 and the iPhone in 2007.
In Australia the Company has been fined tens of millions by authorities resulting in senior directors of the Company being sacked.
There are also signs of slowing, with its popular PlayStation 4 (PS4) console nearing the end of its cycle and Companies such as Google moving to take on the Japanese Company with a new gaming platform.
Sony reported lower-than-expected profit in February, dragged down by its previously thriving gaming business, even as a one-off gain related to its acquisition of music publisher EMI pushed the quarterly result to a record high.
Third Point last exited a stake in Sony in 2014 with a roughly 20 per cent gain after spending a year and a half pushing for Sony to spin off its entertainment division, writing in a letter to investors that the division “remains poorly managed”.