Third Point Said to Urge Sony for Entertainment IPO

Billionaire Daniel Loeb’s bid to break up Sony Corp. will need to overcome a history of failed efforts by activist investors in Japan.

Loeb’s Third Point hedge fund asked Sony, which had seen its market value shrink almost 90 percent from its peak, to sell as much as 20 percent of the entertainment business in an initial public offering and focus on its struggling electronics unit, according to a letter to Chief Executive Officer Kazuo Hirai. The entertainment business isn’t for sale, Tokyo-based Sony said. The stock rose to its highest in almost two years.