Sony loses a billion at the movies – TechEye
Sony takes $1.3b write-down as Ghostbusters, Angry Birds movies disappoint
There have been rumours for a while now that Sony was thinking of off-loading its movie business, and now it is clear why.
The outfit has dropped nearly a billion dollars on its entertainment business. Sony said it will write down $976 million in the third quarter, blaming weaker film profits as online streaming services sap demand for movie DVDs.
To offset part of the loss, the company also said it would sell shares in the medical web service M3 to Goldman Sachs's Japan unit, in a deal worth about ¥37 billion.
The announcement comes two weeks after Sony said the chief executive officer of Sony Entertainment, Michael Lynton, is stepping down after a 13-year run. The studio has struggled recently, including with last year's Ghostbusters sequel and a movie based on the Angry Birds video game. Sony warned in June the division was at a risk of posting more losses.
Read more: Sony takes $1.3b write-down as Ghostbusters, Angry Birds movies disappoint
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Sony takes $1.3b write-down as Ghostbusters, Angry Birds movies disappoint
There have been rumours for a while now that Sony was thinking of off-loading its movie business, and now it is clear why.
The outfit has dropped nearly a billion dollars on its entertainment business. Sony said it will write down $976 million in the third quarter, blaming weaker film profits as online streaming services sap demand for movie DVDs.
To offset part of the loss, the company also said it would sell shares in the medical web service M3 to Goldman Sachs's Japan unit, in a deal worth about ¥37 billion.
The announcement comes two weeks after Sony said the chief executive officer of Sony Entertainment, Michael Lynton, is stepping down after a 13-year run. The studio has struggled recently, including with last year's Ghostbusters sequel and a movie based on the Angry Birds video game. Sony warned in June the division was at a risk of posting more losses.
Read more: Sony takes $1.3b write-down as Ghostbusters, Angry Birds movies disappoint
Follow us: @FinancialReview on Twitter | financialreview on Facebook
Disney killing the game.
Good!
