TOKYO: Sony chief Kazuo Hirai said Wednesday the company was examining a hedge fund proposal to sell off part of its entertainment unit in a bid to boost profits in its core business.
Hirai told a press conference board members have started discussing the idea raised by key shareholder Daniel Loeb, whose investment fund Third Point suggested spinning off as much as 20 percent of Sony's entertainment arm.
"The proposal by Third Point is a very significant matter that would affect Sony Group's core business and Sony Group's operation," Hirai told reporters at the company's Tokyo headquarters as he gave an update on a medium-term business plan.
"We would like to respond to Third Point after having full discussions at board meetings. At this point, we don't have a schedule as to when we do what," Hirai said, adding that talks among board members have already started. "We are always hopeful that we can engage in positive discussions with shareholders," he added.
He had earlier said the entertainment arm was an integral part of the business and was not for sale.
Sony, like many Japanese companies that came of age in the booming Japan of the 1970s and 1980s, diversified its operations to include seemingly unrelated businesses with few synergies.
Critics say this has left them too big to cope with their more nimble overseas competitors and has led to years of profit bleeding.
Its financial arm, however, which includes banking and insurance operations, has significantly contributed to the firm's bottom line.
Loeb — an outspoken shareholder activist known for his aggressive style in trying to force change at targeted firms — said he supported Hirai's bid to shake up one of Japan Inc.'s best-known names.
Billionaire investor Loeb says his firm is now Sony's largest investor through direct and indirect holdings. Hirai took the helm of the iconic Japanese firm last year.
Earlier this month, Sony reported its first annual net profit in five years, although it was largely driven by a weakening of the yen — which boosts the value of its repatriated foreign income — and a string of asset sales including unloading its Manhattan headquarters.
Hirai said he was on track to bringing Sony's money-losing television business into profitability.
Sony and and domestic rivals Sharp and Panasonic have struggled in the low-margin television business against foreign rivals.
Sony board examines hedge fund spin-off plan
Sony board examines hedge fund spin-off plan
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
