Sony Corp. is one of the leading companies in Japan which is focused on electronics and especially the use of semiconductors in such a market. Sony has always been number in the market and has provided many different products under the large umbrella of electronics. They are well-known for their electronics and the entertainment sector which provides different products including the play station is one of the most known examples.
Recently, one of the investors in the company which is Dan Loeb from the United States has made an argument to the company that it would be better for them to divide the company into two different companies. This would have the focus of providing one company focused on electronics alone while the other company will be holding the entertainment sector as a whole.
This was not a new idea as Third Point did actually provide the same concept almost six years ago which they believed will simplify the complexity in the business. This was revealed by Third Point through a letter that they provided to Sony with a pitch to their move. Some data from the information contained in the letter is as follows: “Sony’s gaming, music and pictures segments would become the core after the semiconductor spin. Despite its operational excellence, strong leadership, diversified portfolio of outstanding businesses and tremendous potential for further value creation, Sony is undervalued and underestimated by the market. Following a spinoff of semiconductors, Sony will emerge as a focused entertainment company with leading global positions in gaming, music and film.”