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.
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.”