Sony Corp. has confirmed that it will this week discuss proposals that it should sell part of its entertainment business as a new spin-off company to investors on the stock exchange.

The news comes a week after activist hedge-fund investor Daniel Loeb encouraged the spin-off of the company’s music and movie divisions in a letter to Sony CEO Kaz Hirai.

Loeb – whose Third Point LLC owns around 6% of Sony stock - is urging the Sony boss to consider ...