According to a report in the New York Post, Sony Corp. is weighing up the possibility of restructuring its U.S operations to place Sony Pictures Entertainment under its far more profitable gaming subsidiary – Sony Interactive Entertainment.
Any such move would likely see Andrew House, CEO of Sony Interactive Entertainment gain oversight of Sony Corp’s subsidiary company Sony Pictures, currently sitting at No.5 in the Box Office for 2016, but with an operating loss of $74 million.
Sony Corp. moved to deny the possibility of House overseeing Sony Pictures with a spokesman stating, “This is nothing but baseless rumour and speculation. There are no plans to for Andrew House to oversee Sony Pictures.”
With Sony Interactive Entertainment providing a great financial success for Sony Corp. in 2016 ($6.4 billion in revenue in the past 6 months) with Andrew House at the helm, it is strongly believed that the Tokyo-based entertainment and electronics powerhouse is now in conversation to move its under performing SPE underneath its gaming subsidiary, a move partly down to hugely poor performances at the box office this year, with Ghostbusters one of the Sony Pictures underwhelming films financially.
“There is talk they are going to merge SPE (Sony Pictures Entertainment) with PlayStation,” said another source familiar with Sony Corp, with a re-organisation of the company likely to see Sony Pictures Entertainment Chairman and CEO Michael Lynton leave the company after 12 years at the helm.
It is thought that Sony will look to make up its mind regarding a possible restructuring of its US operations by March 31, 2017, the end of its fiscal year.