It's looking like Sony is going to tell Daniel Loeb thanks but no thanks for his proposal that the company spin-off its entertainment assets into a separate, privately traded company.
Sony Corp.'s board is leaning towards rejecting the proposal by the activist investor after it met this week, according to a report in the Nikkei.
Sony Pictures Entertainment had no comment on the report, which comes a day before its parent company in Japan releases its latest quarterly earnings. Loeb runs Third Point Management, the largest shareholder in the media and technology conglomerate.
"The Sony Board and management continues to review the Third Point proposal, and we have no comment on this report," Jim Kennedy, a spokesman for the company, said in an email to TheWrap.
Loeb has not always delivered his opinions delicately. In a recent note to investors, Loeb slammed Michael Lynton and Amy Pascal, the co-chiefs of Sony Pictures Entertainment, for a series of flops like "After Earth" and "White House Down" and for presiding over a culture that lacked accountability.
However, Loeb's protests have also been profitable. As Reuters notes, Sony's shares have climbed 14 percent since he began agitating for a spin-off last May. With a 6.5 percent stake in Sony, Third Point stands to make off nicely even if the board does not heed Loeb's advice.
Loeb previously agitated for change at Yahoo, eventually exiting the company's board and selling back 40 million shares.
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