Sony Will Keep Its U.S. Film, Music Units
TOKYO — Sony Corp. President Nobuyuki Idei reiterated Friday that the company plans to keep its U.S. entertainment businesses, adding that it has no immediate plans to make a public offering of stock in the units.
Meeting a small group of reporters in Tokyo, Idei also said he has no plans for now to replace Michael P. Schulhof, who was recently ousted as Sony’s top officer in the U.S. Idei was joined by the heads of Sony’s major U.S. units, including Sony Pictures Entertainment President Alan J. Levine and Sony Music chief Thomas D. Mottola.
Sony has been streamlining its corporate operation in the U.S., with the heads of its film, music and electronics units reporting directly to Idei.
“I am a humble and simple man, so I don’t want many, many layers. I want to reduce layers,†Idei said.
Idei’s main message at the gathering was to quash speculation that the company may sell Sony Pictures Entertainment. Rumors about Sony’s plans for the unit have increased in recent weeks following the abrupt departure of Schulhof.
In late 1994, Sony took a $2.7-billion write-off on its movie unit, reporting a loss of about $500 million at the same time. In the last year, the company’s track record has been better, with such hits as “Legends of the Fall,†“Little Women†and “Bad Boys†and fewer duds, which have included “First Knight†and “Money Train.†Studio sources expect two current films, “Jumanji†and “Sense and Sensibility,†to end up solidly profitable.
Idei also said he named veteran Tamasu Kawai to the board of Sony Corp. of America, characterizing him as “his personal deputy.â€
Bates reported from Los Angeles, MacGregor from Tokyo.
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