Third Point Responds to Sony Rejection
After Sony rejected its proposal to spinoff entertainment assets, Third Point late Monday issued a statement that they intend to “explore further options to create value for shareholders.”
But the hedge fund also said that it “welcomes Sony’s commitment to greater transparency and expects this will foster a culture of accountability.” While saying they were “disappointed” that Sony did not movie forward with an offering of up to 20% of its entertainment assets, Third Point seemed to indicate that it is willing to see how Sony CEO Kazuo Hirai’s pledge to improve margins and provide additional disclosure transpires.
“Sony has clearly recognized the performance issued we identified,” Third Point said in a statement. “In the new spirit of transparency, management should communicate more specific plans to improve entertainment results. A renewed focus on profitability and better margins should reduce bureaucracy and thus free up resources to invest in high quality motion pictures, filmed entertainment, networks and music, aligning shareholder interests, the creative community and consumers.”
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