Shares of Sony Corp. rose in Monday trading after Reuters reported that Third Point LLC, a hedge fund backed by investor Dan Loeb, was building a stake in the electronics-and-entertainment giant.
The report suggested Third Point was eager to have Sony explore possibilities for some of its business operations, including its movie studio, semiconductor and insurance units. The report cited “people familiar with the matter,” but declined to identify them. Third Point believes Sony’s studio operations might fit with a big streaming-video company like Netflix or Amazon, the report said. The report did not state the size of Third Point’s new stake in Sony, but said the hedge fund was “raising a dedicated investment vehicle, targeting between $500 million and $1 billion in capital, so it can buy more Sony shares,.”
Sony’s New York-listed shares surged 7.57% in earlier Monday trading, up $3.26 per share to $46.33.
Third Point has tried to prod Sony to shed its studio in the past. It notched a significant gain on a stake it built in Sony in 2014, after working for more than a year to get the company to spin off is entertainment operations.