Sony Pictures

Last updated

Sony Pictures Entertainment Inc.
FormerlyColumbia Pictures Entertainment, Inc. (1987–1991)
TypeSubsidiary
Industry Entertainment
FoundedDecember 21, 1987;33 years ago (1987-12-21) as Columbia Pictures Entertainment, Inc.
August 7, 1991;29 years ago (1991-08-07) as Sony Pictures Entertainment Inc.
Founder Sony
Headquarters,
Area served
Worldwide
Key people
  • Tony Vinciquerra (Chairman and CEO)
  • Stacy Green (Executive Vice President & Chief People Officer) [1]
  • Jon Hookstratten (Executive Vice President, Administration & Operations)
Products
Services
RevenueIncrease2.svg US$9.316 billion (FY2019)
Increase2.svg US$628 million (FY2019)
Owner Sony Group Corporation
Number of employees
9,500 (2019 )
Parent Sony Entertainment
Divisions
Website www.sonypictures.com
Footnotes /references
[2] [3]

Sony Pictures Entertainment Inc. (commonly known as Sony Pictures or SPE, and formerly known as Columbia Pictures Entertainment Inc.) is an American entertainment company that produces, acquires, and distributes filmed entertainment (theatrical motion pictures, television programs, and recorded videos) through multiple platforms. Through an intermediate holding company called Sony Film Holding Inc., it is operated as a subsidiary of Sony Entertainment Inc., which is itself a subsidiary of the multinational technology and media conglomerate Sony Group Corporation. [4] [5] Based at the Sony Pictures Studios lot in Culver City, California, it encompasses Sony's motion picture, television production and distribution units. Its group sales in the fiscal year 2017 (April 2017 – March 2018) has been reported to be $9.133 billion. [3]

Contents

SPE is a member of the Big Five and the Motion Picture Association (MPA). [6]

Some of Sony Pictures's film franchises include: The Karate Kid , Ghostbusters , Spider-Man , Jumanji , Stuart Little , Men in Black , Zombieland , Underworld , the Sony Pictures Universe of Marvel Characters, Robert Langdon , The Smurfs (via Peyo), Sniper , Hotel Transylvania , Bad Boys , Cloudy with a Chance of Meatballs , and Charlie's Angels .

History

On September 1, 1987, The Coca-Cola Company announced plans to spin off its assets of Columbia Pictures, which it had owned since 1982. Under this arrangement, Coca-Cola would sell its entertainment assets to TriStar Pictures, of which it owned 39.6%. Tri-Star would be renamed as Columbia Pictures Entertainment, Inc. (CPE), with Coca-Cola owning 49%, its shareholders owning 31%, and Tri-Star's shareholders owning 20%. [7] [8] A new company was formed in early 1988 with the Tri-Star name to take over the studio's operations. [9]

On September 28, 1989, Sony obtained an option to purchase all of The Coca-Cola Company's stock (approximately 54 million shares or 49% of the outstanding shares) in CPE for $27 per share. [10] The next day, Sony also announced that it reached an agreement with Guber-Peters Entertainment Company, Inc. (NASDAQ: GPEC; formerly Barris Industries, Inc.) to acquire CPE for $200 million when Sony hired Peter Guber and Jon Peters to be its co-chairmen. [11] This was all led by Norio Ohga, who was the president and CEO of Sony during that time. [12]

The hiring of Guber and Peters by Sony to run Columbia was conflicted by a previous contract the producers had signed at Warner Bros. Time Warner's chairman, Steve Ross, threatened Sony with a lawsuit for breach of contract. The lawsuit would be subsequently dropped when Sony sold half-interest in Columbia House and cable distribution rights to Columbia's feature films, TV movies, and miniseries to Warner Bros. That same agreement also saw Columbia sell its 35% interest in the Burbank Studios and acquired Lorimar Studios, previously the MGM lot, from Warner Bros. [13] [14]

On October 31, 1989, Sony completed a friendly takeover bid for the rest of shares (51%) of CPE, which was a public company listed on the New York Stock Exchange (NYSE: KPE), and acquired 99.3% of the common stock of the company. On November 8, 1989, Sony completed the acquisition by a "short-form" merger of its wholly owned subsidiary Sony Columbia Acquisition Corporation into CPE under the Delaware General Corporation Law. Sony also completed a tender offer for shares of common stock of the Guber-Peters Entertainment Company on November 6, 1989 and acquired the company 3 days later. The acquisition cost Sony $4.9 billion ($3.55 billion for shares and $1.4 billion of long-term debt) and was backed (financed) by five major Japanese banks Mitsui, Tokyo, Fuji, Mitsubishi and Industrial Bank of Japan. [15] [16] [17] The company was renamed as Sony Pictures Entertainment on August 7, 1991. [18] [19]

Sony has since created numerous other film production and distribution units, such as creating Sony Pictures Classics for art-house fare, by forming Columbia TriStar Pictures (also known as the Columbia TriStar Motion Picture Group) by merging Columbia Pictures and TriStar Pictures in 1998, revitalizing Columbia's former television division Screen Gems. It expanded its operations on April 8, 2005, when a Sony-led consortium acquired the legendary Hollywood studio Metro-Goldwyn-Mayer, in a US$4.8 billion leveraged buyout, through the holding company MGM Holdings Inc. [20] [21] [22]

This in effect re-united the MGM studio name, with the MGM main studio lot, although somewhat confusingly, the bulk of the pre-May 1986 original MGM library ended up at Time Warner via the Ted Turner-Kirk Kerkorian "Turner Entertainment Co." transactions. The post-April 1986 MGM library consists of acquisitions of various third-party libraries, such as the Orion Pictures catalogue, leading to MGM's 2014 remake of RoboCop.

On June 4, 2008, SPE's wholly owned group 2JS Productions B.V. acquired Dutch production company 2waytraffic N.V., famous for Who Wants to Be a Millionaire? , acquired from the original production company Celador, and You Are What You Eat for £114.3 million ($223.2 million in US dollars).

In 2011, the Sony Pictures computer network was breached and approximately one million user accounts associated with the SonyPictures.com website were leaked. [23]

On November 18, 2012, Sony Pictures announced it has passed $4 billion with the success of releases: Skyfall , The Amazing Spider-Man , 21 Jump Street , Men in Black 3 , Hotel Transylvania , Underworld: Awakening , The Vow , and Resident Evil: Retribution . [24] On November 21, 2013, SPE and Sony Entertainment's CEO Michael Lynton announced that SPE will shift emphasis from movies to television by cutting its 2014 film slate. [25] [26] [27] [28] It was also announced on the same day, that there will be more Spider-Man sequels and spin-offs, [29] though on February 10, 2015, Sony Pictures eventually signed a deal with Disney's Marvel Studios to allow Spider-Man to appear in the Marvel Cinematic Universe, beginning with Captain America: Civil War , before appearing in Spider-Man: Homecoming which was released on July 7, 2017. [30] The deal also allowed Sony to distribute and have creative control on any MCU film where Spider-Man is the main character (such as Homecoming and its sequel Spider-Man: Far From Home ), while Disney will distribute MCU films where Spider-Man appears without being the main character.

On January 22, 2014, SPE folded its technology unit into the various cores of its businesses. [31] In April, Sony Pictures arranged a film financing deal worth $200 million with LStar Capital, the credit venture of Lone Star Capital and Citibank, half in debt and the other in equity to fund most of SPE's film slate for several years. SPE was originally considering a $300 million deal with Blue Anchor Entertainment, led by Bloom Hergott partner John LaViolette and former investment banker & producer Joseph M. Singer, and backed by Longhorn Capital Management and Deutsche Bank, which was held up by regulatory matters. [32]

As a result of reevaluating the assets of the motion pictures and television productions businesses (capitalized film costs, including the value of the film library mostly recorded at the 1989 acquisition of CPE), Sony recorded a $962 million non-cash goodwill impairment charge in SPE in the third quarter of 2016. [33]

On July 3, 2018, Sony accidentally uploaded the film Khali the Killer on YouTube in its entirety. The film stayed up for several hours before being removed. [34]

In November 2019, Sony purchased the remaining 42% stake in GSN from AT&T, placing it under the direction of its television division. [35] In April 2021, Sony signed a first look deal with Netflix, allowing the streaming service to host their films following their theatrical runs and home media releases. [36] That same month, the company also entered into a multi-year licensing agreement with The Walt Disney Company for its films to stream across Disney's streaming and linear platforms, including Disney+ and Hulu. [37]

2014 hack

In November 2014, the Sony Pictures computer network was compromised by a group of hackers named Guardians of Peace, disabling many computers. [38] Later the same week, five of Sony Pictures' movies were leaked, including some not yet released (such as Fury and Annie ), as well as confidential data about 47,000 current and former Sony employees. [39] [40] [41] Film historian Wheeler Winston Dixon suggested that the hack, which exposed the inner workings of the studio, was "not a pretty picture," and served as a "wake-up call to the entire industry." [42] The hack also revealed some other documents, emails between Hollywood moguls referring to Barack Obama's cinematic tastes, a possible partnership with Marvel Studios for the inclusion of the superhero Spider-Man in Captain America: Civil War , which was later confirmed in February 2015, amongst others. [43] [44] On December 16, the hackers issued a warning to moviegoers, threatening to attack anyone who sees The Interview during the holidays and urging people to "remember the 11th of September 2001". [45] On December 17, 2014, Sony cancelled the previously planned December 25 release of The Interview in response to hacker threats. [46]

On February 24, 2015, Tom Rothman was named chairman of SPE's motion picture group to replace Amy Pascal. [47] [48]

On April 16, 2015, WikiLeaks published over 30,287 documents, 173,132 e-mails, and 2,200 corporate e-mail addresses of Sony Pictures' employees. WikiLeaks said in a press release that the content of the leaks were "newsworthy and at the center of a geo-political conflict" and belonged "in the public domain". Sony Pictures later condemned the hack and subsequent leaks, calling it a "malicious criminal act", while also criticizing WikiLeaks for describing the leaked content as public domain. [49] [50] [51]

Seth Rogen has expressed doubts about North Korea being responsible for the 2014 Sony hack. Based on the timeline of events and the amount of information hacked, he believes the hack may have been conducted by a Sony employee. [52]

Corporate structure

Headquartered in Culver City, California, USA, SPE comprises various studios and entertainment brands, including Columbia Pictures, Screen Gems, TriStar Pictures and GSN.

Senior management team

Motion Pictures and Home Entertainment

Television

U.S. production and distribution

  • Sony Pictures Television: (formerly Columbia TriStar Television Group) The successor-in-interest to Columbia's television division (first Screen Gems, later Columbia Pictures Television, TriStar Television, and Columbia TriStar Television), as of 2004 the unit was producing 60 titles for various television outlets globally. Contains a library that includes more than 35,000 episodes of more than 270 television series and 22,000 game show episodes under the Sony Pictures Television brand, and the television rights to the Embassy Pictures library (including The Graduate and The Lion in Winter ) and also the owner of the television division "Embassy Television"—among most recent notable shows in this library are Party of Five , The Shield , Seinfeld , The King of Queens , Days of Our Lives and The Young and the Restless . Their former international distribution division, Sony Pictures Television International, was responsible for global distribution for the SPE film and television properties worldwide. Formerly known as Columbia TriStar International Television from 1992 to 2002.
    • Affirm Television: Affirm Films' television division. [57]
    • Embassy Row: A television and digital production company by Michael Davies. SPT acquired the company on January 14, 2009.
    • Funimation: A distributor and licensor of dubbing anime known for the Dragon Ball franchise, Fairy Tail , Yu Yu Hakusho , One Piece and My Hero Academia . SPT acquired 95% of Funimation in 2017. [58]
    • Gemstone Studios
    • TriStar Television: Originally launched in 1986 and folded into Columbia Pictures Television in 1988. Relaunched in 1991 and became in-name-only in 1999. Relaunched again in 2015 as a production label within SPT.

International production

  • 2waytraffic: Acquired by Sony in 2008, this television production company owns a number of formats, most notably including Who Wants to Be a Millionaire? .
  • Blueprint Television: (small stake)
  • Electric Ray: Founded by Karl Warner with SPT in January 2014. [59]
  • Floresta
  • Huaso: A Chinese joint venture production company launched in 2004 by Sony Pictures Television International and Hua Long Film Digital Production Co., Ltd. of the China Film Group in Beijing. [60]
  • Lean-M Producers Center: A Russian production company founded in 2000 by Timur Weinstein and Oleg Osipov, later joined by Vyacheslav Murugov. In 2007, SPTI acquired a majority stake in Lean-M, with an additional 16% on April 13, 2009 [61] and the remainder in 2010.
  • Left Bank Pictures: A UK production company founded by Andy Harries, Francis Hopkinson, and Marigo Kehoe in 2007. Majority stake acquired by SPT in 2012.
  • Playmaker Media: An Australian production company acquired by SPT in 2014. [62]
  • Silvergate Media
  • Starling
  • Stellify Media: A joint venture between SPT, Kieran Doherty, and Matt Worthy launched in 2014 for Northern Ireland. [63]
  • Teleset

International distribution

Television networks

United States
International

Other Sony Pictures operations

Sony Pictures Plaza in Culver City Sonypicturesentertainmentoffices.jpg
Sony Pictures Plaza in Culver City

The following are other Sony Pictures divisions that are not subsidiaries of the California-based Sony Pictures Entertainment, but are instead subsidiaries of the main Tokyo-based Sony Corporation.

Notes

  1. ^ Sony Pictures Releasing became Sony Pictures's current film distributor in 1994.

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