Feeds

Sony's board debates breaking up with Spider-Man

Firm considers investor plan to make its movie and music division public

New hybrid storage solutions

Sony has said that it will consider a proposal from activist investor Daniel Loeb that the group should sell off parts of its music and movies business, which includes popular franchises Spider-Man and Resident Evil and the weepy ballads of Brit crooner Adele.

Chief exec Kazuo Hirai told reporters from the Financial Times, Reuters and others that the company's board was discussing the plan to sell a portion of its entertainment biz, suggested last week by the firm's largest investor, Loeb's Third Point hedge fund.

Loeb said he wants the ailing Japanese firm to spin off 15 to 20 per cent of its film and music division in a public offering to raise money for its electronics and turn the entertainment business into a separately listed firm. The fund manager's suggestions carry new weight after revealing that he had increased Third Point's stake in Sony to $1.1bn.

While Hirai said the board was talking it over, he gave no sense of whether he or the board thought it was a good idea, saying that he would only give his own opinion after "sufficient debate".

"Third Point’s proposal involves the way we manage a core business of the Sony group and the direction of our management," he said, "so the Sony board will give it thorough consideration before replying to Mr Loeb."

The company already uses money from its entertainment division, which also includes TV shows such as Breaking Bad, to prop up its electronics operations, along with funds from its insurance biz, which is listed on the exchange.

The division brought in ¥85bn ($826m, £550m) in operation profit last year, making it the second biggest earner after the insurance and finance arm.

Hirai cut Sony's sales targets for cameras, smartphones and fondleslabs by 13 to 17 per cent for the fiscal year that ends in March 2015. In the current business year, the company is expecting operating profit of ¥230bn ($2.24bn, £1.48bn), around the same as this year when it kept its head above water with one-off moves such as selling its US head office in New York. ®

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.