Mergers, Acquisitions and Takeovers Case Study

Sony's Film Studios' Acquisitions : The Strategic Fit

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Abstract:
Sony forayed into the entertainment business in the late-1980s by acquiring CBS records and Columbia Pictures. To further strengthen its motion pictures business that became profitable only after the mid-1990s, Sony went ahead to acquire a leading film studio in the US – Metro-Goldwyn-Mayer. Investing $300 million in the acquisition, Sony planned to ensure the long-term growth and profitability of its motion pictures business with the help of MGM's vast library of movies and television episodes, besides creating synergies between its technology and entertainment businesses.

Pedagogical Objectives:

• To discuss Sony's strategy to sustain the competitive edge in its entertainment and consumer electronics businesses
• To discuss the integration issues entailed therewith its acquisitions.

Keywords : Sony; Sony pictures entertainment; Metro-Goldwyn-Mayer; Sony MGM;Mergers,Acquisitions,Alliances Case Study; Columbia Pictures; Tristar; Film studios in US; Strategic fit; Sony's film studio acquisitions; Comcast; Peter Guber; Synergy; Michael Schulhof

Contents : 
Introduction
Sony Pictures Entertainment Division
The Strategic Fit
Profit Or Loss By Business Segment
Metro-Goldwyn-Mayer Inc. Condensed Consolidated Results
Michael Schulhof
1996’s Sony Pictures’ Disappointments
Metro-Goldwyn-Mayer Inc.