So a few weeks after Dan Loeb (whom George Clooney criticized the other day) told Sony that (a) he owned 7% of Sony and (b) that Sony should essentially break itself up (see my May 15 piece for some background and history) in order to “unlock shareholder value”, he got an official response back from the venerable Japanese giant.
As Daisuke Wakabayashi and Ben Fritz write on the WSJ (paywall),
In a letter released on Tuesday, Sony said it considered the proposal made by Mr. Loeb’s Third Point LLC—which has said it owns about 7% of Sony’s shares—and concluded that the company is better off owning all, and not part of, the content businesses because of their increasing value in the rapidly changing technology industry and their potential to drive growth at the electronics unit. In addition, Sony said that should the company require additional capital for restructuring its electronics business, it has alternative sources available.
“Should we require capital, or in the event of unanticipated events, our priority would be to raise it without selling a portion of an asset fundamental to our growth strategy, and without unnecessarily burdening Sony’s ability to execute our business strategy for both entertainment and electronics,” wrote Sony Chief Executive Kazuo Hirai.
Your move, Mr Loeb.