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Sony takes a $962 mn write down on movie biz
MUMBAI: On the back of box office disappointments like ‘Inferno’ and a sluggish DVD market, Sony said it is taking an impairment charge of $962 million on its movie business.
Sony CEO Kazuo Hirai is now in charge of the movie business after Michael Lynton announced that he was stepping down. Media reports indicate that a lot of cost cutting has been taking place.
Sony is reducing profitability projections for films. A majority of the goodwill that was impaired was originally recorded at the time of the acquisition of Columbia Pictures Entertainment in 1989.
The company noted that the DVD market fell faster than expected.
A spokesperson has been quoted in Reuters saying that Sony is pressing ahead with a turnaround plan, strengthening markets outside the US, including India and China, bolstering income from intellectual property and cutting costs.
The company also said that the “film segment continues to be an important business of Sony”.
Lynton’s replacement has not been announced so far.