The idea would be to showcase the underappreciated value of SPE, which Loeb called Sony's "hidden gem" and defined as "coveted assets in television and motion picture production, an iconic library of movies and television programming, the leading music publishing business, and an exciting array of international cable networks." However, as high as the hedgie is on SPE assets, he criticized the Sony division's profit margins for sinking to half of those recorded by its peers. Merely bringing them to industry levels, Loeb wrote, SPE's "EBITDA would increase by as much as 50%." And that would translate into "an incremental ¥625 billion
But that was just the half of it. Loeb also envisioned his right-for-cash subscription plan as generating "meaningful liquidity to inject into Sony Electronics." This division, while the historical favorite of Sony management, was depicted as a post-war wunderkind reduced to a stepchild gone astray. "Of particular regret is Sony's venerable TV business, which has sadly languished as a loss leader for the company for nearly a decade," the hedgie wrote.