Sony Earnings Have Witnessed Loss In Profits With Loeb Criticising The Movie Unit

Daniel Loeb, who is the billionaire investor criticised Sony Corporation’s film studio due to some of the major big budget flops which the box office witnessed lately. In the last year, Sony generated sales of up to $425.8 million during the last quarter.
Loeb recommended that a part of the entertainment of Sony should be sold off. The statement was made after movies such as ‘After earth’ and ‘White house down’ were not able to recover even the cost of production from the sales in the United States. Kazuo Hirai, the CEO has its main focus on the electronics that are unprofitable, whereas entertainment requires vigil supervision. Loeb was also stated saying that Sony’s CEO is not worried that entertainment is generating profits quite less than its competitors.
Last March quarter, Sony generated a net income of about 93.9 million, which is almost at a loss of about 24 million when compared to its previous year.
Selling Sony’s entertainment
Sony entertainment’s film unit did not have even a single movie amongst the top 5 in June. The third point LLC was also reported saying that Sony pictures has an improper accountability and said they also have poor control over the finance aspect.
After the above, the board of Sony has decided to sell off some part of the unit of entertainment in the initial public offering. Hirai was also confirmed stating that the tie between the business of entertainment as well as electronics is vital.
Strengthening the electronics front
Currently Sony is focussing on growing and expanding the electronics business. It was mailed that this would further strengthen the financial as well as the entertainment sector. This statement was emailed by Jim Kennedy, who is a NY city spokesperson for the company Sony.
Third point had a Sony stake which was valued at around $1.1 billion. It is felt that if there will be an independent board, this would eventually lead to a more organised accountability at Sony. This will further be enhanced by shareholders.
Third point also owns about 70 million shares and that too through direct ownership.
The two movies ‘After Earth’ and ‘White house dawn’ were being compared to movies like Water world. This is the reason that third point was baffled after hearing from Sony’s CEO ‘that everything was fine.’
Smartphones & Playstations
Loeb was being kinder in the efforts of Hirai to recover Sony’s hardware section which is making smartphones and also game consoles and also various other things. Third point’s letter also stated that the introduction of Sony’s play station 4 has brought momentum in the business.
Yasuo Nakane, who is an analyst at the famous Deutsche bank,said that it is difficult for a company like Sony. It is so because it’s various products like cameras, tablets and also smart phones and TVs (including LEDs and LCDs) and various other products are cannibalizing each other.
The game and mobile products of Sony is joining the businesses of device. This was stated according to hedge fund.