Sony hires Morgan Stanley, Citigroup to consider entertainment IPO
Sony has brought in major financial help from Morgan Stanley and Citigroup as it considers billionaire Daniel Loeb's proposition that it breaks off and sells its entertainment division, Bloomberg reports. Loeb, who owns a 6 percent stake in Sony stock worth $1.1 billion, wants Sony to sell as much as 20 percent of its entertainment business.
Sony CEO Kazuo Hirai previously said the board would consider Loeb's offer. Loeb, with Third Point LLC, sent a letter to Sony on May 14 arguing an entertainment IPO would allow Sony to focus on its electronics arm, which has seen nine consecutive annual losses.
