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Sony considering split of entertainment and electronic divisions

Sony is considering a proposal to split its entertainment and electronics divisions, in accordance with a recent proposal from billionaire investor Daniel Loeb for a public offering of its entertainment business including PlayStation, Bloomberg reports.

Loeb, who is Sony's largest investor, proposed a division of the two division in a hand-delivered letter. His company, Third Point, currently owns a $1.1 billion stake in the corporation.

"[The board will] come to a decision that represents Sony's stance," CEO Kaz Hirai said.

Loeb asserted in his letter that Sony would be able to reward management based on divisional performance by adopting this change.

Earlier in the month, however, a Sony representative openly rejected the offer, stating: "As President and CEO Kazuo Hirai has said repeatedly, the entertainment businesses are important contributors to Sony's growth and are not for sale, We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy."