Sony at War Over PlayStation Division

A demand by a major Sony shareholder for the company to turn its Entertainment division - which contains PlayStation - into a separate company has been rejected.

We reported in May that the largest owner of Sony Corp stocks, a hedge fund called Third Point and headed up by billionaire Daniel Loeb, had written to Sony CEO Kaz Hirai demanding that its profitable Entertainment division should be sold off. Kaz has written back:

"Sony's entertainment businesses are critical to our corporate strategy and will be important drivers of growth, and I am firmly committed to assuring their growth, to improving their profitability, and to aggressively leveraging their collaboration with our electronics and service businesses", he says, continuing:

"Sony’s board of directors has unanimously concluded that continuing to own 100 per cent of our entertainment business is the best path forward and is integral to Sony’s strategy."

But Loeb isn't giving, issuing its own statement that included the following, "Third Point looks forward to an ongoing dialogue with management and intends to explore further options to create value for Sony shareholders..."

The war continues.