Market Overview

Sony's Stock Jumps Following Report Dan Loeb Is Building A Position

Share:
Sony's Stock Jumps Following Report Dan Loeb Is Building A Position

Activist investor Dan Loeb and his Third Point hedge fund is accumulating a stake in Sony Corp (NYSE: SNE) and could push the company to explore several strategic alternatives, according to a Reuters report.

What Happened

Third Point has already amassed a stake in Sony and is looking to raise $500 million to $1 billion in new capital to increase its stake in the Japan-based conglomerate, sources close to the matter told Reuters. The activist investor may be looking to push Sony to take a closer look at its movie studio, which attracted takeover interest from Netflix, Inc. (NASDAQ: NFLX) and Amazon.com, Inc. (NASDAQ: AMZN).

Loeb also wants Sony to better explain how its semiconductor and insurance businesses fit in with the rest of the company, sources told Reuters.

Why It's Important

Loeb and his hedge fund are familiar with Sony's operations having owned around 20 percent of the company in 2014. A failed activist campaign that focused on convincing Sony to spin its entertainment division prompted Loeb to write to investors the business "remains poorly managed," Reuters said. He did change his tune later on and gave Sony credit for slashing costs and making necessary management changes.

What's Next

Sony transitioned its business over the past decade to become an entertainment company backed by stable revenue from music and video games, Reuters said. Moving forward, investors are looking for new sources of growth at a time when the PlayStation 4 console is approaching the end of its cycle.

Sony's stock traded higher by 6.8 percent at $46.06 per share at time of publication.

Related Links:

Third Point's Dan Loeb Wants to Break Up Sony

Sony Zaps Take-Two M&A Rumor; BofA Says Company Seems Pricey

Posted-In: Dan Loeb JapanNews Rumors Hedge Funds Top Stories Media General Best of Benzinga

 

Related Articles (AMZN + NFLX)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Getting Your Trading Day Off On The Right Foot: $5,000 In The First 5 Minutes

2U Buys University Boot Camp Maker Trilogy In $750M Deal