TOKYO, May 22 (UPI) -- Japanese conglomerate Sony's board said it would make a good-faith effort in considering spinning off its entertainment business.
One of Sony's largest shareholders, the hedge fund Third Point, run by activist investor Daniel Loeb, forwarded the proposal to Sony's board last week.
Loeb suggested spinning off the entertainment divisions so the firm could focus on its struggling consumer electronics business, The New York Times reported Wednesday.
Corporate boards in Japan typically don't respond to suggestions by shareholders but Third Point owns more than 6 percent of Sony, making it hard to ignore, the Times said.
"It is an important matter that relates to Sony's core businesses and management, so the board must hold ample discussions," said Sony Chief Executive Officer Kazuo Hirai in response to the proposal. "We will engage in through discussions at the board level."
He said discussions had already begun but added that the board would take "ample time" in formulating a response, giving no timetable for a formal answer to the proposal.
"We are still in early stages," he said. "But we intend to engage positively with our investors."
"The No. 1 mission assigned to me is to bring change to Sony and to revive our electronics business," said Hirai, who took the CEO position in June 2012.
Sony has not made a profit in more than a decade, the Times said. But, "we are on the offensive," Hirai said.
