Proposed Sony Merger Would Bring Together Two Major Players in Entertainment
A report from the New York Post suggests a merger may be in the future for Sony Pictures Entertainment and Sony Interactive Entertainment. An insider claims that talks are underway for a Sony Merger to take place, with a decision being made by next year. The proposed merger would shift operational control of the two companies to SIE.
The merger would mean a change in company leadership as well. If SIE took over SPE operations, Michael Lynton would likely step down as Sony Pictures Entertainment CEO.
The move, if accurate, makes sense from a financial perspective. Sony’s gaming business is much more profitable than their movie business. With Sony Pictures running at an operating loss of 74 million, perhaps the change in the winds is justified.
While a spokesperson dismissed these claims as “baseless rumor and speculation,” a separate source reinforced them, claiming that the merger talks were happening.
If a merger is going to be officially announced, the likely deadline will be the end of next March. With the end of the company’s fiscal year will come the chance to formally decide on the merger.
This news follows Sony’s Pictures division scaling back their yearly production forecast in November. The studio reported an underwhelming box office performance overall, despite ranking fifth on the year’s box office listings.
No word on whether this restructuring would have any negative implications for Sony’s future movie production schedule.