Following a stellar yearly report, Sony has quickly turned down Third Point's proposal to spinoff part of their entertainment business out of the company. Under Kazuo Hirai, the One Sony philosophy remains intact and will keep entertainment, gaming and other segments together as a cohesive whole.
Third Point CEO Dan Loeb has expressed disappointment with Sony's decision and says they will try to look for more ways to increase shareholder value for the future.
At the end of it all, Loeb did not get what he want, but arguably didn't lose anything. He still owns 7 percent of the company, making him its largest outsider shareholder, and is thus set to benefit the most from the pending release of the Playstation 4, dependent on that console's success of course.
In earlier statements, Loeb praised Sony for the performance of their gaming division, and also for the Playstation 4 announcement itself. The PS4 is riding on a wave of momentum since E3 when their announcements that they would not force players to go online or limit how they share games made them the proverbial winner of the show.
However, Loeb also criticized the company for favoring their electronics and other divisions over entertainment, referring to the latter as Sony's "red-headed stepchild." His moves to acquire a higher stake in the company and public criticism of its management were clearly meant to pressure them to taking his offer.
This news has also brought with it mixed results, for while Sony raises their sales forecast for the following year their stock value dipped 5.41 percent to 2,021 yen. This is the biggest drop since May 27 and shows that a lot of investors were betting more on Loeb than putting their trust on Hirai. There's no doubt in my mind Loeb will continue to be a player in Sony in the near future.
Source: Bloomberg
