Dan Loeb's Third Point Urges Sony To Spin Off Its Semiconductor Business

(RTTNews) - Daniel Loeb's activist hedge fund Third Point, which took a $1.5 billion stake in Sony Corp. (SON.L, SNE), urged the Japanese consumer electronics maker to make dramatic changes, including spinning off its semiconductor business and listing it in Japan.

"We rarely find companies like Sony that have a depressed valuation, high-quality underlying businesses, numerous options for portfolio optimization, and a capable management team," Third Point said in a public letter to investors.

If Sony spun off the semiconductor business and executes on its long-term vision, the new company Sony Technologies could be worth $35 billion within five years, the New York-based hedge fund firm.

Sony should also consider the divestiture of its public equity stakes in Sony Financial, M3 Inc, Olympus, and Spotify that would allow Sony to focus on its main entertainment business including gaming, music and movies, Third Point said in the letter.