Sony considers proposal to sell piece of entertainment unit

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Sony Corp.’s board is considering a proposal from a major shareholder to sell as much as 20 percent of its entertainment business, which includes the Sony movie studio, according to various reports, including BLOOMBERG.COM, THE NEW YORK TIMES and THE HOLLYWOOD REPORTER.

The Columbia Pictures unit of Sony has released the last three James Bond movies from 2006 through 2012 and is contracted to distribute the next film, Bond 24, whenever it comes out.

The proposal to sell a piece of the entertainment business was made last week by investor Daniel Loeb and his Third Point LLC, which holds a 6.5 percent stake in Sony. An excerpt from the Hollywood Reporter story citing Sony Corp. CEO Kaz Hirai:

“Firstly, I would like to clarify that the Third Point proposal is to sell off 15-20 percent of the entertainment division, not to spin it off as a separate entity,” said Hirai. “ We take this as an important proposal from one of our shareholders, and we will consider it thoroughly. We will discuss this fully at the board level and present our answer.”

The New York Times ran a MAY 19 REPORT about Sony Studios that said it wasn’t as profitable as other studios. The story cited Skyfall as an example. The Wilson-Broccoli family (referred to as the “James Bond rights holders”) got its cut and then Metro-Goldwyn-Mayer and Sony split the remainder 75-25, according to the story.

To view a Bloomberg Television video about Sony, CLICK HERE.

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