Sony mulls hedge fund’s entertainment sale idea

Wednesday, May 22nd, 2013 | Finance News

TOKYO (AP) — Sony's CEO Kazuo Hirai says the company's board will discuss a proposal by U.S. hedge fund manager Daniel Loeb to spin off up to 20 percent of its movie, TV and music division.

Hirai was asked about the proposal at a corporate strategy presentation Wednesday. He did not give a timetable for a decision, and would not give his own opinion about the suggestion raised by Loeb, who is CEO of hedge fund Third Point LLC.

Loeb said money from the sale could be used to shore up Sony's ailing device manufacturing unit.

Sony initially responded by saying its entertainment business was not for sale, though some analysts said the strategy might help Sony unlock hidden value.

Sony's shares jumped 5.9 percent in Tokyo trading to 2,290 yen.