Sections

Sony hires firm to cut $100 million from Entertainment Division budget – report

Tuesday, 19th November 2013 20:59 GMT By Stephany Nunneley

Sony has hired Bain & Company global management consulting firm to find ways to cut $100 million in costs in order to return to profit, per a Bloomberg report.

The report states the cuts will result in job losses across the firm’s entertainment division, which includes Sony Pictures and its games sector a person close to the matter told Bloomberg.

Some of Sony’s investors, most notably Daniel Loeb of Third Point, havecalled for Sony’s to break up its entertainment empire, so that it can focus its efforts on maximising profitability for its core electronics business.

The firm’s CEO Kazuo Hirai will be hosting a conference on November 21 to discuss the entertainment division. Hirai has said in previous months he wants Sony divisions unified going forward, instead of splitting them up as suggested by shareholder and Third Point LLC boss Daniel Loeb who hand delivered a letter suggesting a split to Hirai.

In his letter to Hirai, Loeb proposed the firm sell 15-20% of Sony Entertainment to shareholders which would allow the firm to funding to help its electronics division.

Last we hear, Sony was reportedly in talks with Morgan Stanley and Citigroup regarding splitting  the entertainment and electronics divisions, and even the possible sale of the entertainment unit.

Another report stated the board of directors had started discussing the idea, with Sony CEO Kaz Hirai reportedly saying the board would “come to a decision that represents Sony’s stance.”

Breaking news

12 Comments

Sign in to post a comment.

  1. Erthazus

    I have a better idea. Make a product that everyone wants to buy.

    I think it is a great idea.

    #1 5 months ago
  2. pukem0n

    Bane & Co.

    #2 5 months ago
  3. bradk825

    Tell me they are not paying $100 million to the firm that will help them cut $100 million. Please tell me that.

    #3 5 months ago
  4. Legendaryboss

    @1
    Cute.

    #4 5 months ago
  5. ddtd

    @3 – of course not. It was more like $25 million.

    J/K, of course. :)

    #5 5 months ago
  6. bradk825

    @5 haha. “Just kidding, it was $120 million.” Hey, if it were government that would not be far from the truth, lol.

    #6 5 months ago
  7. onlineatron

    not good. must be scary after a successful launch

    #7 5 months ago
  8. Beta

    I’m sure Batman will be keeping an eye on This!

    I’m sorry.

    #8 5 months ago
  9. Max Payne

    @3 My thoughts exactly.
    House of lies anyone ?

    #9 5 months ago
  10. Fin

    @1

    Asshole.

    1m 24 hours sales not enough, no?

    #10 5 months ago
  11. Francis O

    Where is Dragon with that world class damage control? I’ve been trying to tell you drones Sony is in deep financial trouble.

    If the PS4 isn’t a smash hit….

    #11 5 months ago
  12. Erthazus

    @10, For Sony? So far it is not enough. 1 million is expected even by Sony and shareholders.
    Let them surpass at least initial target of 5 m up to march then we can talk.

    @Francis O, Dragon is fighting over PS4 vs Xbox One threads on other sites. Sony warriors are on the horizon.

    #12 5 months ago