Sony to write off $ 1 billion in movie business failures
At the end of 2016, the Sony Corporation decided to write off about one billion dollars in losses due to problems with its cinema division Sony Pictures. This is reported by LA Tmes. It is worth noting the unusualness of this decision, since, as a rule, studios write off losses on some specific movie projects. For example, as did Studio Paramount in the case of the fantastic movie "Monster Trucks". In this case, in fact, we are talking about the devaluation of the entire studio Sony Pictures. "This is such a wake-up call," says expert and financial consultant Peter Siley. "Instead of admitting a mistake in a particular case, with a particular movie, they admit to the fallacy of the whole strategy." The market immediately reacted to the news by dropping the value of Sony shares by 3.5 percent. In order to somehow cover losses from the activities of the Sony Pictures studio, the parent company intends to sell the medical firm M3 Inc. The cost of this transaction has not been specified. Recall that earlier it became known about the resignation of the head of Sony Pictures Entertainment, Michael Linton, who had worked in the company for 13 years. The exact reason for his departure was not named, but analysts believed he was associated with the failure of major movie projects of the studio in recent years. The Topic of Article: Sony to write off $ 1 billion in movie business failures. |
