Sony's board has rejected Third Point CEO Daniel Loeb's proposal that it sell part of its entertainment business. Loeb, who's known for shaking up Yahoo, wrote to Sony Corp. in May proposing the sale of up to 20% of the movie and music division; his Third Point owns about 6.5% of Sony. Loeb said money from the sale should be used to strengthen Sony's ailing electronics arm, which has suffered from intense competition in the global TV manufacturing business. In a letter to Loeb, Sony said that continuing to own 100% of Sony Pictures and Sony Music is "fundamental" to its success.

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