According to the latest news in the semiconductors industry, one of the investors in Sony, Dan Loeb was able to disclose a total of $1.5 billion which allowed him to make changes as he wants in the company. Dan was able to raise the shares of the company in Japan a total of 3.1% which is a huge value. Accordingly he decided to invite the company towards changes in their semiconductor markets by spinning it off.
Accordingly, Dan believes that this will allow the company to be worth $35 billion in the upcoming five years which is a huge success for the semiconductors business.
This was commented on by an analyst and expert in Ace Research Institute known as Hideki Yasuda who said the following: “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. As a standalone public company listed in Japan, Sony Technologies would be a showcase for Japan’s technology capabilities. Rather than just an uncut rough stone buried inside Sony’s portfolio. I’m uncertain whether a spin-off would actually increase value. The semiconductor industry is notoriously volatile and requires constant, huge investments. That’s easier to manage if it’s done as a part of Sony’s bigger group. By leveraging the superior technology we have developed in this business, we expect to maintain our industry leading position going forward.”