Sony has rejected a proposal by one of its biggest shareholders’ that it sell part of its entertainment business, sending the company’s shares down more than 5%.
In a letter to Third Point CEO and founder Daniel Loeb, the Tokyo-based electronics company said it would benefit from owning 100% rather than part of Sony Pictures and Sony Music.
Loeb proposed the sale of up to 20% of the division in May, calling for cash from the move to be used to boost Sony’s electronics division, which has suffered in recent years.
Kazuo Hirai, CEO at Sony, said: "Sony’s board of directors has unanimously concluded that continuing to own 100 percent of our entertainment business is the best path forward and is integral to Sony’s strategy,"
Sony’s letter added that content had been increasing in value and the entertainment business would benefit from new distribution platforms and high-speed broadband and mobile devices.
Sony’s shares fell as much as 5% after the company rejected the proposal.
