Nevertheless, we believe the film unit possesses considerable library cash flow value, currently masked by poor new production profitability, as well as significant asset value in its Culver City lot. “This makes apples-to-apples comparisons with peer film studios (which lack the benefit of cable networks in those segments) even more unflattering. Loeb praised the performance of the international cable TV networks and TV production businesses but called profits from the film unit “negligible”: While Loeb praised Sony CEO Kazuo Hirai for his moves to improve the results from electronics, including Sony’s Xperia Z smartphone and the PlayStation 4, he expressed disappointment that in recent conversations with analysts, Hirai has been too easy on Sony’s entertainment and music businesses.Įntertainment and music are leaders in their industry, Loeb says, but they are not achieving the same levels of profitability as their competitors.

“Drastic - rather than incremental - action is required,” wrote Loeb. If those entertainment assets were a separate company, Loeb argued, it would spur a more focused, accountable management - and such a spinoff would provide capital and increased profits, with which Sony could invest in electronics. The Culver City-based unit, managed by Sony Entertainment CEO Michael Lynton and studio co-chair Amy Pascal, is “characterized by a complete lack of accountability and poor financial controls,” Loeb wrote to his shareholders. RELATED: Daniel Loeb Nabs $610 Million in Pretax Profit from Yahoo! Stock Since earlier this year, the fund has accumulated 70 million shares of Sony, nearly 7 percent of the company’s common stock.

Loeb’s fund Third Point manages about $4.5 billion.

Waterworld movie profits