TOKYO — A US hedge fund has proposed that Sony Corp. sell up to 20 percent of its entertainment business and use the money to strengthen its ailing electronics unit, drawing a quick rejection from the sprawling Japanese consumer conglomerate. In a May 14 letter to Sony President Kazuo Hirai, first published in The New York Times, hedge fund Third Point suggested Sony take 15 percent to 20 percent of the entertainment unit public. Third Point CEO Daniel Loeb said that would allow the Japanese maker of PlayStation game machines to fund improvements to its battered electronics operations. Sony replied in a statement Tuesday that its entertainment business, which includes movies and music, is not for sale, and stressed it is trying to strengthen both that division and its electronics operations. "As President and CEO Kazuo Hirai has said repeatedly, the entertainment businesses are important contributors to Sony's growth and are not for sale," Sony said. "We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy." The proposal highlights a common criticism of Tokyo-based Sony that it has never been able to take advantage of having both electronics and entertainment under its wing. Instead, one has tended to drag the other down. Some analysts have made suggestions similar to Loeb's. – AP
