Sony Corporation ranked the 16th in the 2015 edition of the list of Fortune Global 500. The Japanese company with the headquarters in Minato, Tokyo, has successfully penetrated a large diversity of industries such as gaming, electronics, financial services, as well as the entertainment industry. Thanks to its professional efforts, the world received great cinematographic works such as The Amazing Spider-Man, Passengers, Spectre, Inferno, and Hotel Transylvania. Despite great brand awareness, Sony’s latest earnings report suggests a collapsing movie business.
This Thursday, one of the chief executives at Sony Corporation rejected the business decision to sell parts of its movie and television segment. This discussion became a possible solution to financial problems after Sony was urged to post $1 billion write-down. Kenichiro Yoshida, the chief financial officer at Sony, stated that the most important strategy at this moment is to maintain all rights over their own business units.
The entertainment project started to crumble under Sony back in 2014 after the company suffered a cyber attack. The line of decline continues to stretch out over the year of 2017 as well. While the analysts forecast a profit of $757 million until the end of the fiscal quarter in March 2017, the company is expecting earnings of $231 million. The expectations are even lower than before as Sony previously anticipated a net profit of $534 million.
The company received another strike when Michael Lynton handed his resignation. He has been working with the group for 13 years and succeeded to position himself in the company as the chief executive of Sony Entertainment. Mr. Lynton will occupy a chairman seat at Snap, which owns the popular messaging application Snapchat. Thus, Kazuo Hirai, the chief executive at Sony, left Japan to find a suitable replacement in America.
On Thursday, the chief financial officer Kenichiro Yoshida informed the press about earnings report and the possible causes of Sonny’s collapse in the movie business. It seems that the downfall was caused by internal management decisions that focused more on short-term gains. While the company enjoyed quick bursts of spectacular earnings, Sony is now struggling with the aftermath. In order to regain its successful form, the present management should come up with long-term financial strategies.
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