Abstract

The case discusses the acquisition of the US-based Columbia Pictures (now known as Sony Pictures Entertainment) by Sony Corporation, Japan. The case focuses on the various problems faced by SPE on account of poor corporate governance, mismanagement and differences between the Japanese and American management cultures, in the first five years after Sony's acquisition of it. It examines the various initiatives taken by Sony to revive the financial and business performance of SPE. The case explores the future of SPE in the light of its failure to realize the synergies identified prior to the acquisition, the highly risky movie business and impending problems at Sony's electronics division.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Cross-border Acquisition
• Cultural Mismatch.

Keywords

Sony Corporation, Columbia Pictures, Cross-border Acquisition, Corporate Governance, Financial Mismanagement, Cultural Mismatch, Sony Pictures Entertainment, Convergence, MGM