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Break up Sony, hedge fund chief urges

Daniel Loeb, founder of Third Point, wants Sony to spin off its entertainment division and sell its profitable insurance unit, in order to focus on reviving the electronics arm.

Ellyne Phneah
Sony Vaio Fit 14
This is one of Sony's latest laptops, the Vaio Fit 14. Sarah Tew/CNET

An American hedge fund billionaire has called for the breakup of Sony, in a bid to tighten its focus on the electronics division.

The call on Tuesday came from Daniel Loeb, founder and CEO of hedge fund Third Point, known for its role in ousting Yahoo's former CEO Scott Thompson and enlisting Marissa Mayer from Google to run the company, the New York Times reported, citing people familiar with the matter.

Sony's entertainment arm includes one of the biggest film studios in Hollywood and one of the largest music labels in the world.

Loeb also signaled he would accept a seat on Sony's board. The hedge fund has quietly amassed a stake of about 6.5 percent in Sony, making it the one of the company's biggest shareholders, noted NYT.

Read more of "Hedge fund CEO wants Sony to break up biz units" at ZDNet.