(Bloomberg) -- Activist investor Dan Loeb disclosed a $1.5 billion stake in Sony Corp. and is pushing the Japanese technology giant to spin off its semiconductor division and focus on its main entertainment business.
Sony is “one of the most undervalued large cap businesses in the world today,” Loeb’s Third Point LLC wrote in a letter to its investors Thursday. On a website with the title ‘A Stronger Sony,’ Loeb also said Sony should consider selling its stakes in companies including music streaming service Spotify Technology SA and camera maker Olympus Corp., and improve its capital structure.
The company’s semiconductor business, which makes image sensors used in smartphones, could be a $35 billion company within five years, Third Point wrote in the letter.
“As a standalone public company listed in Japan, Sony Technologies would be a showcase for Japan’s technology capabilities,” it added.
Emails sent to Sony representatives in the U.S. seeking comment were not immediately returned on Thursday.
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