A major investor in Sony has called for the company to be broken up, with its entertainment business sold off in order to support its electronics arm.
Daniel Loeb stated that up to 20 per cent of the entertainment side of Sony ought to be sold, as this would be a boost for the rest of the company.
In a letter published by the New York Times, he said: "To maximise Sony's overall success, we believe the company should change the structure of its ownership of Sony Entertainment."
Mr Loeb is the founder of US hedge fund Third Point, which holds a 6.5 per cent stake in Sony. The US share price of the firm jumped by ten per cent in trading yesterday.
Sony reported its first annual profit for five years last week, but analysts pointed to the weakening yen against the dollar as one of the reasons for its improvement in recent months.
Shares in Sony will open at 20.76 when the New York Stock Exchange opens today (May 15th).
Learn about the Asian markets and CFD trading at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.