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Sony (SNE) up 8% as activist investor Dan Loeb builds stake

Sony's stock jumped today on news that Third Points Dan Loeb is building a stake in the company. The activist investor appears to be targeting the company again.
Asif Khan
Asif Khan
3

Sony shareholders who have had a tough couple of months were treated to a nice surprise this morning. The stock jumped 8% on news that Third Point's Dan Loeb is targeting the company again and has recently added to his stake. The activist investor has previously took aim at the company claiming that Sony's entertainment segment was "poorly managed."

Share of Sony surged on news of the increased stake. Loeb will likely try to push through more changes at the company. Third Point currently manages $14.5 billion and is reportedly raising an investment vehicle dedicated to buying shares of Sony. The firm seeks to raise between $500 million and $1 billion according to sources. Over the past few years, Sony has regained its financial footing with a renewed focus on entertainment, music, and video game revenue growth. Some investors fear that Sony's PS4 console is showing signs of slowing after a monstrous run.

Third Point's Dan Loeb has not been shy about his opinions on Sony's management. | Getty Images
Third Point's Dan Loeb has not been shy about his opinions on Sony's management. | Getty Images

Loeb and Third Point want Sony to explore the possible sale of some of their business units. The hedge fund believes that Sony's entertainment division will be attractive to companies like Amazon and Netflix. The firm reportedly wants management to provide clarity into how the semiconductors and life insurance divisions fit in with the rest of the company. Reuters sources asked to remain anonymous, but the stock market appears to believe this news as fact with the stock (SNE) jumping over 9% at one point during Monday's trading session.

Third Point dropped their last attempt at shareholder activism with Sony when they exited their position with a roughly 20% gain in 2014. It appears the hedge fund is ready for round two. Neither Third Point or Sony have commented on this report, and we will be sure to keep our readers up to date as this situation develops. 

CEO/EIC/EIEIO
CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

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