Billionaire’s maneuver makes Sony shares rise this Monday (8).
This Monday (8), Sony shares are taking off because of Dan Loeb, one of the largest investors in the market.
According to market sources, the boss of Third Point Capital is trying to raise about $1 billion to buy Sony stock, increasing its stake in the company and having the power to force some administrative changes in the company.
This is not the first time Loeb has been interested in the company.
In 2013, the executive led a campaign for Sony to separate its entertainment division from the leading company and turn it into a company of its own, claiming that the division did not bring the expected profit to the company because it was poorly managed and left in the background by the company that only cared about its electronics division.
After three months of negotiations with Loeb, the company’s executives decided not to make any changes, maintaining the entertainment division – which consists of a film studio (Sony Pictures) and a record company (Sony Music) – that would have a better future as an integral part of Sony.
In recent years, Sony’s stock has been boosted by the massive success of the PlayStation 4, but its entertainment division is still seen as secondary to the company.
According to Reuters, Loeb believes Sony’s studios may be targeted by both Amazon and Netflix (currently, Sony produces The Tick for Amazon Prime Video and The Crown for Netflix ), and that would be interesting a separation from the division of the leading company.
Also may have contributed to the decision of Loeb the change occurred last year at the head of Sony, which placed Kenichiro Yoshida in the role of CEO, who since assuming said to see the entertainment division as a significant sector of the company.
With news of Loeb’s interest, Sony shares on the New York Stock Exchange rose 7.3 points on Monday.
If you go ahead with the plan, this will not be the first time Loeb has used this kind of strategy.
At the beginning of the decade, the investor did the same thing with Yahoo, buying shares until becoming a majority partner and forcing the company to make a significant change in its entire management structure.
Loeb sold the shares of the brand in 2013, making a profit of $520 million in the process.
The executive believes he will be able to do the same with Sony’s entertainment division, which owns rights to movie franchises such as Men in Black, Jumanji, and Ghostbusters, and signed with artists such as Beyoncé, Daft Punk, Pearl Jam, and Pharrell Williams.