Sony woes could spark another battle with Loeb
Loeb will be rattling now that the stock has dropped, said the person familiar with the situation. This [also] opens the door for other activist investors.
Sonys poor financial situation leaves its US chiefs in a tough spot, wondering how to expand their businesses when all the capital has to head back to Tokyo, one person explained.
Its going in the wrong direction, said one source with knowledge of the situation.
As long as the stock keeps dropping, Loebs plan for a spin-off of the entertainment assets is logical, a second source in the loop said.
This person likened the entertainment assets of Sony to the value of Yahoo!s Alibaba stake meaning that the core business adds little to the overall value of the company.
Sonys move to spin off its television-set business into a new entity is being viewed as a precursor to a possible sale one move that would fit into Loebs vision of a slimmed-down Sony.
Sonys entertainment assets are valued at roughly $14 billion, sources estimated.
A stock price decline to the $13-a-share neighborhood could bring activists off the sidelines, the person said.
If the entertainment assets were sold, Sony could give its stock price a huge boost and begin a period of reinvestment in its core products.
Sony has continued to say it isnt interested in selling its entertainment assets and rejected Loebs plan for a spin-off soon after its proposal last year.
Complete article at:
http://nypost.com/2014/05/16/sony-woes-could-spark-another-battle-with-loeb/