Sony taking Loeb proposal seriously

WHAT’S SEXIER, MUSIC OR INSURANCE? Under pressure from activist hedge-fund investor Dan Loeb to spin off part of the company's movie and music businesses, Sony Corp. CEO Kazuo Hirai acknowledged that today he’s taking the concept seriously, the Wall Street Journal reports. "The proposal from Third Point [and] Dan Loeb is something that we should discuss thoroughly at a board meeting and then we'll decide Sony's stance," Hirai said in a briefing today in Tokyo to lay out his strategic vision for the company. "Therefore, we are now going to start the discussion and we are still at the starting stage." Hirai didn't give a timetable for when the board would reach a decision. Sony is planning to get three new board directors after its shareholder meeting in late June. Last week, Loeb, whose Third Point owns about 6% of Sony's stock, said taking up to 20% of the entertainment division public would help unlock the value there while freeing up capital to overhaul the company's battered electronics business. Sony itself set the precedent for such a move in 2007 when it spun off its banking and insurance unit through an IPO. The division trades on the Tokyo Stock Exchange, while Sony owns 60% of the stock. Sony now generates nearly all of its profit from its entertainment and insurance units. As the traditional consumer electronics market continues to slump, the company hopes to strengthen its position in the vibrant smartphone business. (5/22a)