ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Sony rejects investor demand for chips business spinoff

Company rebuffs hedge fund Third Point even as market for its sensor unit soars

Sony has rejected a demand from Daniel Loeb's activist hedge fund Third Point that it spin off its chipmaking unit, saying it is "crucial" to the company's growth.    © Reuters

TOKYO -- Sony on Tuesday rejected calls by U.S. activist investor Daniel Loeb to spin off its chip business, arguing that it is a "crucial growth driver" for the Japanese electronics and entertainment company.

Sony, in which Loeb has amassed a $1.5 billion stake, equivalent to almost 2% of the company, wrote in a letter to shareholders that retaining the chips business was the "best strategy for enhancing Sony's corporate value over the long term."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more