Feeds

Sony's board debates breaking up with Spider-Man

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

Providing a secure and efficient Helpdesk

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.