As of the 27th of May its still not up for sale!
Sony’s chief executive, Kazuo Hirai, said last Wednesday that its board would consider Third Point’s proposal, even as it emphasized that the discussions were preliminary and that it had not set a time for a response.
"But to a small band of analysts, Mr. Loeb’s prescriptions for Sony are shortsighted, merely milking the company’s profit-making content business for good money to throw after the bad. "
http://www.nytimes.com/2013/05/28/business/global/sonys-bread-and-butter-its-not-electronics.html?pagewanted=1&_r=3&
Also
“Even if Sony had cash from a hypothetical sale of movies and music, we do not currently see any potential electronics investments that could deliver higher returns,” says Goldman Sachs analyst Takashi Watanabe. ”Given this, we believe it would make more sense under present conditions for Sony to keep the entertainment businesses and their potential contributions to operating profits and cash flow.”
Furthermore, Sony may actually have an opening in its struggling TV business according to Bloomberg. As rivals Samsung and LG fumble on expensive OLED displays, Sony and other lower-cost manufacturers may be able to reassert themselves in the market.
Sony is poised for a comeback, with or without Loeb’s suggestion becoming a reality.
The current spike in share value is a sign that investors are eager to see Sony make bold reform moves, but the company may be able to take less drastic steps and still come out on top. Focusing greater resources into its entertainment arm and scaling back losing electronics operations while continuing to offload office space and trim down their workforce may be enough to steady the ship, even if it’s not enough to inspire temporary spikes in share value.
Indeed, failure to implement Loeb’s plan could very well see a significant drop in shares regardless of other steps Sony might take, rattling confidence in the Japanese manufacturer.
Sony shares were up 8% in Tokyo trading, and have gained more than 100% so far this year, gaining 36% in the last 30 days. The company has projected a 16% in rise in net profits for the current fiscal year.
Sometimes the slow and steady approach to reform is better than being drastic and bold. Whether this applies to Sony remains to be seen.
http://www.forbes.com/sites/erikkain/2013/05/22/sony-shares-spike-following-rumors-of-entertainment-spinoff/
