When Sony's CEO Kaz Hirai took over in April of last year, he immediately said the company would undergo a revival plan that would take some time, but would eventually result in a complete turnaround of the company. Through the year, Sony has seen a few quarters in the black along with a couple of key purchases to boost their portfolio. All of this culminated last month with Daniel Loeb's Third Point LLC hedge fund, Sony's biggest stockholder, suggesting that the company spinoff its media division in order to raise the stock price. After a month of Sony, Hirai, Morgan Stanley and Citi carefully looking over the numbers, the board of directors unanimously decided this week that Sony will not be selling off its media assets into its own entity.
In a letter sent to Daniel Loeb and Third Point LLC, Sony respectfully outlines the reasons why.
Hirai also added that removing Sony's media division from the company would not fit in with Sony's new "One Sony" strategy that he has been trying to implement under the revival plan.
Hirai seems to be really taking this initiative to heart and is working very hard to make sure that Sony continues to remain a competitor in the industries in which it conducts business. The rejection was made are a lot of conversations and extreme consideration, and I honestly feel that their media properties have the most amount of buzz around them, along with revenue. I'd want to keep that as part of One Sony as well. Third Point, however, isn't accepting Sony's rejection. In what looks to be something out of a high school crush, the hedge fund said in a statement,
We'll see what that means for Sony as time goes on, but at least for now, Sony said no. And no means no.
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