After Sony's rejection of spinning off the media division in order to possibly save the company, CEO Kaz Hirai then had to cut $250 million from the media budget, which meant a reduction in movie releases for the year. Now, the company has to fight off rumors that it will be spinning off its music publishing business.
One could imagine that after having to deal with the gigantic data breach by the hands of the Guardians of Peace, Sony might have to make some drastic changes to its company structure. However, in the middle of the aftermath, and after several shareholders begging for it to happen, Sony Entertainment's CEO Michael Lynton said there are no current plans to sell off the division.
This comes after several of the leaked emails by the GOP had indicated that Lynton was considering offers as recent as November. For Sony Entertainment, its catalog contains over 2 million songs, which is currently the biggest collection in the world. This includes EMI, formerly the largest independent recording distribution label that was purchased by Sony for over $2 billion in 2012. A sell-off of this nature would surely inject much needed cash into Sony proper, allowing the company to invest more in its security measures to prevent another massive breach in the wall.
So now that Lynton has pretty much dissolved the rumors that came out of the email leak, what can Sony do to save itself? We've talked in the past that the PlayStation brand seems to be Sony's saving grace up until now, but how long can they rely on that small portion of their business in order to sustain the entire company? At what point does that water-tight compartment eventually get ripped open by an iceberg? Who, for that matter, might step in and pick up the profitable pieces after the ship sinks?
Of course, all of this is speculation right now, but considering the company's current state, none of it is too far from a possible reality. What do you think is going to happen? What parts of Sony stick around? Let us know in the comments section below.
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