Dan Loeb's activist hedge fund, Third Point, called Sony's entertainment division "poorly managed" and compared its would-be summer blockbusters "After Earth" and "White House Down" to the costly box-office embarrassments "Waterworld" and "Ishtar."
"[Sony] Entertainment remains poorly managed, with a famously bloated corporate structure, generous perk packages, high salaries for underperforming senior executives, and marketing budgets that do not seem to be in line with any sense of return on capital invested," the letter said, after a lengthy section praising the positioning and management of Sony's electronics division.
The letter called out Sony CEO Kazuo Hirai for his statement a few weeks ago about the box-office losers. "I don't worry about the entertainment business—it's doing just fine."