Sony Rejects Loeb’s Proposal for Entertainment IPO

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Aug. 6 (Bloomberg) -- Sony says that continuing to own 100% of its entertainment business is fundamental to the company's success. Erik Schatzker reports on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Division which does tv shows and movies like "spiderman," for example, sell it at an ideal and run it as a separate business.

It would force the movie and tv businesses to compete with equal -- on equal footing with rupert murdoch's 20th century fox and also raises some cash and dedicate that to the struggling electronics division.

None of this has happened.

Because sony formally rejected the proposal.

They hired morgan stanley and citigroup and they said they took a hard look at it but they said shareholders will benefit from 100% of the upside in the entertainment division -- i could go through the arguments.

The demand for content is increasing.

We know it to be true.

Full integration, vertical integration within sony -- that much integration right now, though?

Or hats not.

-- perhaps not.

Sony does not need the money.

Number three, and four, exposure and transparency could achieve the same goals.

The relationship of this guy at sony who i would not know from the right fielder of the new york yankees, explain who he he is a the board of sony.

Is it really an independent board?

He is an insider.

He has been at sony for 30 years.

But people do believe, dan loeb included, that he is a breath of fresh air.

That is why downloadable put the proposal on the table.

-- dan loeb but the proposal on the table.

The change of mindset taking place in japan at countrywide with the advent of economics is enough to catalyze change in sony.

If he thought it was a waste of time, he wouldn't -- was a surprise one sony rejected his offer?

Know, reading the tea leaves and the reports -- what does he do now?

Does he go to the hamptons for august?

He is there already.

People are saying that he wants a fight, that this would be something akin to a proxy battle.

Do you believe that?

Not for a moment.

Last night he told me there is a lot to like in sony's response.

The commitment to transparency, the commitment to this closing a detailed breakdown of the performance of the entertainment business is on a regular basis and holding regular meetings with management to the benefit of invest your's. alternately, he says, will get me part way to what i want to achieve with an ipo.

Erik schatzker, thanks for that.

This text has been automatically generated. It may not be 100% accurate.

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