Sony rejects investor's proposed sale of entertainment business

[thismeintiel]

Fusioncode said:

MoHasanie said:
The entertainment division seems to do well and Sony seems to be profitable again so they don't need the money from selling a stake in the entertainment division. However Daniel Loeb is right that they need to increase the performance of that division. They can't afford to have so many movie flops. They had 2 big flops last quarter and now Smurfs 2 is performing below their expectations.

They've had plenty of successes lately. Skyfall made over a milion, Grown Ups 2 is a huge hit, Smurfs may be underperforming in the US but it's doing well overseas and should make a profit. Spidey 2 will do great, as will Bond 24. Sony Pictures is fine, every studio has a few flops here and there. 

Exactly.  And while White House Down is a minor flop, After Earth is far away from being a flop.  It didn't do too well in the States, but WW it has made 110M+ more than it cost to produce the film. More importantly, Sony Studios has been in the Top 5 highest grossing movie studios every year since 2002.  In those 10 years, they took the top spot 4 times (2002, 2004, 2006, 2012.)

I don't usually agree with George Clooney, but he is right on this one.  Loeb is just trying to spread fear to minipulate the market, just so he can make a quick, dirty buck if studios do sell off part of their business.