Sony: Third Point calls for restructuring in PC and TV businesses, could consider shareholder proposals at EGM
Sony major shareholder Third Point, the US hedge fund, is calling for restructuring in the Japanese electronics company’s personal computer and television businesses, the Nihon Keizai Shimbun reported.
The Japanese-language report cited the contents of a letter sent to Sony by Third Point, which said, while praising the sales figures of the new game system Sony began selling last fall, that Sony needs to make serious efforts at restructuring its personal computer and televisions businesses. Regarding Sony’s refusal to accept Third Point’s proposal to split off the entertainment business and take it public, the hedge fund said that as a shareholder it suffered. Third Point emphasized that its wants Sony CEO Kazuo Hirai to make difficult decisions needed to increase profits.
According to a person related to the situation, if Sony is unable to reach the goals it has set Third Point will consider making shareholder proposals at this year’s general shareholder meeting. In contrast to the orders for Sony, Third Point cited Softbank president Masayoshi Son, who has raised the corporate value of Softbank, as one of the world's leading managers, the report said.
Third Point holds about a 7% stake in Sony and around a 1% stake in Softbank, the report said.
Sony has a market capitalization of JPY 1.824tn (USD 17bn).
Source Nihon Keizai Shimbun