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He's board of directors is reviewing a proposal by hedge fund investor Daniel load but to spin off a chunk of Sony's entertainment business has a separate stock boom and I don't.
Yeah so here's the question is it is the Sony sop to corporate governance -- -- you're gonna review the idea when your plan to kill it.
Or might Sony really be open to a dramatic alteration that's -- stock has long been a laggard it was it a 150 dollars a share in 2000 near sixty bucks and 07.
It has been as low as ten bucks -- the past year Sony's thin margin TV -- getting clobbered by Korean and Chinese rivals.
But looking here Sony stock up 35%.
This month it's up 15% -- in the weeks since the spin off idea came out.
Other companies have benefited greatly from breaking themselves apart I've been arguing for three years at Sony should do it.
Now Sony has spent more than two decades in pursuit of that elusive elixir.
Known as synergy it's old line hardware business could make the TV sets and devices.
For the movies and TV shows created by Sony's content side same for the PlayStation and video game software.
But -- never really happened instead hardware has a lethal albatross -- -- higher growth contents side hardware struggles -- and 5% profit margins in music devices Sony is an also ran an arrow that Apple iPod.
Hedge fund block -- floor Daniel -- suggests spinning off a 20% stake in entertainment as a separate stops suddenly new value gets unlocked.
Now other companies are breaking up to great affect our parent company News -- is splitting in half print publishing on one side.
Video content on the other the stock is up since that announcement Time Warner spun off cable.
And now shedding magazines it's Cablevision spun off MSG and AMC networks and those new stocks -- But Sony.
Would have to repudiate over twenty years and multiple billions of dollars in investment to make this move it's a good idea but some say it's highly unlikely unlikely because it's just a difficult thing to accomplish you know when you -- cobble that together and you yeah yourself of that strategy how do you turn around the world and say I never mind we were just wrong you can't afford it kind of he would -- needs -- shake up -- income entirely new owners have not gonna happen again very and Japanese company.
Such a strong precedent of companies breaking up and enhancing value I mean it's one example after the -- yeah including even beyond the media -- we'll see if they don't they'll maybe we will I don't know how they then thanks Venice and casino CEO pay.
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