Daniel Loeb’s hedge fund Third Point LLC is reportedly amassing a stake in Sony Corp.
Citing sources familiar with the matter (and who were not named), Reuters reported that Third Point wants the stake to push for a divestment of some of Sony Corp.’s businesses. The Reuters report could not specify the exact amount Third Point has so far accumulated in Sony stock. But the report did mention that the hedge fund company is forming a vehicle expected to range between $500 million and $1 billion in capital, in order to buy more Sony shares (citing the sources).
Sony, once the leader in consumer electronics, is currently facing heated competition in the space from rivals like Apple. Over the past several years, the company has tried to restructure itself by focusing on entertainment and video games. However, Sony’s gaming business growth is apparently tapering off. That could potentially be spurring investors – especially the activist or more influential ones - into looking for avenues and/or strategies to boost growth.