UPDATE (Aug. 6): Third Point’s Daniel Loeb in an interview with Variety said his relations with Sony are just fine:
In an exclusive interview, Loeb, whose Third Point owns an estimated 7% of Sony, struck a much more conciliatory tone toward the Japanese electronics giant than he’s demonstrated in recent weeks. He praised Sony CEO Kazuo Hirai’s letter to him, calling it “thoughtfully written and detailed in its discussion of profitability and transparency. There was a lot there for shareholders to hang their hats on.”
In response, Nikki Finkke, the editor-in-chief of the Deadline entertainment Web site, wasn’t buying it IN A COMMENTARY. Here’s a partial quote:
So now Third Point hedge fund CEO Daniel Loeb claims today he’s backing off Sony. But only after the putz created chaos and confusion inside a stable and successful studio…Now Loeb will simply retreat to his $45 million penthouse at 15 Central Park West and dream home in East Hampton and not give Hollywood another thought until the next time he feels the urge to kvetch.
ORIGINAL POST (Aug. 5): Sony Corp.’s board rejected a proposal from a major shareholder to sell a piece of its entertainment business, which includes Sony Pictures, the studio that has released the last three James Bond movies.
Sony issued A STATEMENT that reads in part:
Sony Corporation today sent a letter to Third Point LLC following a unanimous vote of Sony’s Board of Directors. The letter outlines that the Board and management team strongly believe that continuing to own 100% of the Company’s entertainment businesses is fundamental to Sony’s success, and that a rights or public offering is not consistent with the Company’s strategy for achieving sustained growth in profitability and shareholder value.
Third Point, led by investor Daniel Loeb, wanted Sony to sell a piece of the entertainment business in an initial public offering. Third Point recently criticized management of the entertainment business for a couple of box-office duds. One prominent Hollywood actor-producer-director, George Clooney, spoke up in Sony’s defense in AN INTERVIEW WITH THE DEADLINE ENTERTAINMENT NEWS WEB SITE.
For now, there’s no real effect on the Bond movies. Sony is slated to release its fourth 007 movie, the untitled Bond 24, in the fall of 2015. Third Point and Loeb presumably will remain a source of tension the management of Sony Pictures. The studio’s big properties in the coming years are Bond 24 and three scheduled Spider-Man movies in 2014, 2016 and 2018.
Skyfall, last year’s Bond movie, sold about $1.1 billion in tickets worldwide. The New York Times reported in May that Skyfall didn’t generate that much profit for the company because Sony was third in line for the proceeds behind Eon Productions/Danjaq and Metro-Goldwyn-Mayer.