Sony Corp (ADR) (NYSE:SNE) no doubt took a hit when the company was forced to announce that the former CEO of Sony Entertainment, Michael Lynton would be leaving the company. However, the entertainment giant seems to have just more unexpected news for the public, including that the company is considering selling its film and TV studio unit.
Sony Pictures, which is responsible for some of the top hit films that are ravaging the popularity on TV screens, such as the highly-anticipated Spider-Man: Homecoming and series of that calibre, including the likes of The Black List are allegedly for sale.
More details about the sale of Sony’s Film and TV studio unit
It was first reported by the New York Times that Sony was in the process of meeting with banks, in order to evaluate different pitches, for the sale of Sony Pictures entertainment. However, the company has not yet released any confirmation to the public, regarding this information.
However, as absurd as this report may sound to the well-versed guru, it does align with the reason that a new interim replacement for the former CEO has not yet been announced by the company. According to people, who are familiar with the matter, if the sale were to be true, it would not include the music assets of Sony, which were also run and managed by the former CEO.
The reason why the rumours of this sale come as a surprise to critics and analysts
Most rumours, which are likely to be guaranteed, often cause doubt and surprise to analysts and critics who are watching the specific industry. This rumour is no different, except for a lot more surprise. This is due to the fact that previously in 2014, CEO Kazuo Hirai adamantly repeated that Sony would not be unloading its Film and TV studio unit to any of its competitors.
Hirai often also stated, “Our entertainment business is an essential part of Sony Entertainment operations.”
However, everything changed for the company, when it experienced a brutal cyber hacking breach, which resulted in the loss of confidential information, which related to Sony Pictures data, which just further emphasises that this rumour of a sale, is not an unfounded one.
Sony Corp stock closed on Monday at 3, 432.00, after witnessing a decline of 40.00 or 1.15%