Sony Pictures just announced that the quarter which ended in September wasn’t a good one. It generated operating income of only $101M, down 61.8% vs the same period last year, on revenues of $2.1B, down 3.7%. Yet parent company CEO Kazuo Hirai this week issued a strong vote of confidence considering the studio’s financial anemia. He took the unusual step of going public to quiet the latest round of speculation that it’s just a matter of time before Sony sells the studio. (It took on new life after CBS chief Les Moonves told The Wall Street Journal that he’d be interested in looking at Sony’s production assets.) “There is absolutely no truth to rumors that Sony’s entertainment businesses are for sale,” Hirai says. “As I said at our strategy meeting in April, Sony is comprised of electronics, entertainment and financial services businesses, and our entertainment companies have a stable business foundation and are poised for future growth. There is no reason to sell these industry-leading businesses and no consideration is being given to the idea.” Biggest problem for Sony Pictures this last quarter was that the income from The Amazing Spider-Man was offset by disappointing results for Total Recall and comparisons to last year when it sold some Spider-Man merchandising rights. Sony says that sales and operating costs will be lower than it anticipated for the fiscal year ending in March because it recently decided to move its sci-fi thriller Elysium to August instead of March. Still, sales and operating income are expected to be up vs last year.


Prediction: Google will buy SONY Pictures.
It’ll be a vintage purchase, however, not unlike someone discovering an old jukebox in an antique shop in the leafy hills of CT.
have been very much of the same mind, but with Amazon ahead of Google in the pecking order for “first tech co to take out a major studio”
Help yourself out, Sony – sell Spider-Man back to Marvel and Disney! Box office results prove Spidey is suffering from franchise fatigue, and only Marvel can turn that around.
You’ll get the cash to invest in whole new franchises that will make you more than ASM 2 ever will.
The Amazing Spider-Man reboot had more heart and soul than anything Marvel’s ever put out. Sony is doing a fine job with the franchise and the sequel will make bank.
Agree
Wasn’t Looper profitable for Sony in Sept?
Looper didn’t get released until September 28th and is still in release so they couldn’t count it for last quarter.
@ Bobo, I don’t know how profitable Looper will end up being, but I am pretty sure that Hotel Transylvania did quite well. I’ve worked at Sony numerous times and the company culture from top to bottom is a winner (I’ve been on every desk you could imagine and have yet to have a bad experience).
I would hate to see the studio purchased and I would hate to see that culture change. Best studio I’ve ever worked at.
Notice how there aren’t any more posts claiming Sony selling Spidey back to Marvel was “impossible?” Looks like we’re all a little clearer on the financial situation now, aren’t we?
There is ALWAYS a deal to be made.
You guys all seem short sighted.
I am waiting for suckers to sell this stock and buying on Tuesday and watch the stock take a 15% bounce when Skyfall kills at the box office.
The production business is the only thing making money there. You fail to realize Sony sells TVs which no one is buying thanks to Obama killing the economy.
@ short sighted, I hope you’re right. Skyfall will KILL, but I assume you know that Sony has to share that profit with everyone and their mother, right? Don’t know how much of an impact it will have…