Sony’s entertainment division will reduce costs by US $100m

What? Sony Corp to improve its entertainment unit performance while reducing costs.
Why it matters? Sony’s debt rating could be considerably reduced after the start-up of the company’s strategy.

 

Photo_ Licensed Creative Commons

Photo: Licensed Creative Commons

Sony Corp is going to meet with investors these days in order to improve the company’s entertainment unit performance. The company has hired Bain & Co to identify $100m worth of cuts, according to Bloomberg.

The company’s entertainment strategy was discussed in the conference hosted by Sony CEO Kazuo Hirai at the company’s studios in California last November 21st.

Hirai is seeking to lower costs after reporting a Q2 loss that drove Moody’s Investors Service to warn that Sony’s debt rating could be cut to junk.

With billionaire Daniel Loeb of Third Point LLC requesting a partial sale of the business, Sony Corp has confronted criticism over the profitability of its entertainment division.

Mitsushige Akino , chief fund manager at Ichiyoshi Asset Management Co, stated: “entertainment is a growing area for Sony, and improving the business cannot be all about just cutting costs.”

Source:M&M Global


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

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