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Sony looks to make $250m entertainment cuts

Sony looks to make $250m entertainment cuts

Fri 22 Nov 2013 9:00am GMT / 4:00am EST / 1:00am PST
Business

Hirai makes the case for keeping the business intact; but Lynton adds "no cost is too sacred to cut"

Sony is looking to make $250 million worth of cuts in its entertainment business, including shifting movie investment to TV production and media networks, and reducing the output of Columbia Pictures.

The company's largest investor has suggested Sony should consider selling-off parts of its business, but at a meeting of investors yesterday CEO Kaz Hirai made the case for keeping its entertainment divisions as one.

"I know that the whole of Sony is greater than the sum of its parts," he said, as reported by Bloomberg. "Sony Entertainment is a core part of Sony and is crucial to our future growth."

He pointed to the introduction of exclusive Sony content for the PlayStation 4 and the adoption of Blu-ray in the PS3 as examples of synergy in the business.

But according to CEO of the entertainment division Michael Lynton, "no cost is too sacred to cut".

The business is currently looking at $150 million of overhead and operational efficiencies and $100 million of procurement savings, according to the report.

2 Comments

Andrew Goodchild
Studying development

1,235 396 0.3
I don't suppose they'd consider selling the Spider-man rights back to Marvel pictures then?

Posted:9 months ago

#1

Christian Keichel
Journalist

633 866 1.4
I don't suppose they'd consider selling the Spider-man rights back to Marvel pictures then?
Considering the fact, that the last Spider-Man movie had a budget of $230 million and earned $752 million at box office (DVD and BluRay sales not included), I would say No.

Edited 1 times. Last edit by Christian Keichel on 25th November 2013 10:07am

Posted:9 months ago

#2

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