The multinational conglomerate Sony Corporation (DREAM) is a dominant force in the world of consumer electronics, entertainmentand telecommunications. It’s hard to imagine the company’s humble beginnings after World War II. Masaru Ibuka and Akio Morita founded a Tokyo electronics store that became the Sony Corporation with little more than $500 and a handful of employees. With the American market in mind, entrepreneurs developed two innovative products for that time – a tape recorder and a transistor radio.
The company has come a long way since then and has made a number of strategic moves acquisition which helped strengthen its position as a behemoth in the corporate world. Read on to learn more about the four most important companies owned by Sony and how they contribute to its financial success.
- Sony is a leader in consumer electronics, entertainment and telecommunications.
- Sony Mobile Communications was launched in 2012 following the end of a ten-year joint venture with Ericsson.
- Sony bought Columbia Pictures for $3.4 billion in 1989.
- CBS Record Group, part of Sony Music Entertainment, was acquired in 1988 for $2 billion.
- Sony bought gaming and cloud computing company Gaikai in 2012 for $380 million primarily for its talent and gaming rights.
The corporation posted 11.54 trillion Japanese yen revenues for the fiscal year ending March 31, 2023, approximately $82.31 billion. The company’s top operating segment is its Games & Network Services division, which primarily consists of the PlayStation brand. This segment has the highest revenue of ¥3.64 trillion. The company’s Music and Financial Services divisions followed with total revenues of ¥1.38 trillion and ¥1.45 trillion, respectively.
Sony’s market capitalization as of May 2023.
Sony Mobile was formed in 2011 when Sony decided to go its own way in the mobile phone business at the end of a 10-year joint venture with the venerable Swedish telecommunications company Ericsson (Eric).
Sony Mobile has tried to compete directly with Apple with its line of Xperia phones with limited success. After years of struggles, the division posted a profit of roughly $254 million in its 2020 fiscal year. At the end of October 2021, it reported a year-on-year increase in sales of 25%.
The company posted operating income of ¥1.202 trillion, or approximately $8.6 billion, in the fiscal year ending March 31, 2022.
Columbia Pictures Entertainment
Columbia Pictures began operations in 1918 as a small company film production studio compared to the leading Hollywood studios of the time. During the late 1920s and beyond, the studio experienced rapid growth and prospered financially as a result of its association with legendary film director Frank Capra.
Over the next 50 years, Columbia Pictures entered television, merging and splitting numerous times with industry players such as Screen Gems and Warner Bros. Coca-Cola bought Columbia Pictures in 1982 for $750 million and sold it to Sony in 1989 for $3.4 billion. cash business. The acquisition made Sony a major player in American movies.
Sony initially posted more than $2 billion in losses as a result of the purchase. However, blockbusters such as “The Da Vinci Code” and franchises such as “Spider-Man,” “Men in Black” and “James Bond” ultimately earned Columbia Pictures more than $4 billion worldwide. Columbia Pictures is a division of Sony Pictures Entertainment, which posted revenue of over ¥1.2 trillion, or about $8.8 billion, in the fiscal year ending March 31, 2022.
CBS Record Group
Like Columbia Pictures, CBS Record Group had a long history in American entertainment. The company was founded in 1929 and was first known as the American Record Corporation. At the time, the company specialized in rights management, production and distribution of music recordings. Columbia Broadcasting System it was acquired by the American Record Corporation in 1938, but only had the right to use the word Columbia in North America. To expand their business worldwide, executives renamed the company CBS Records.
Sony began acquiring CBS Records in 1988 for $2 billion. At the time, CBS Records was the most successful music company in the world. Consequently redemptionSony renamed CBS Records to Sony Music Entertainment and reintroduced the Columbia brand. Contracts with music industry powerhouses such as Whitney Houston, Beyoncé and Pink have helped Sony Music Entertainment earn annual sales exceeding $7.8 billion.
Founded in 2008 by David Perry, Rui Pereira and Andrew Gault, Gaikai develops video games and cloud playing games technique. The company’s innovative systems allow players to stream ad-supported games for free and do not require players to purchase ad-free versions. Gaikai’s Share Play feature allows players in multiple locations to play games together.
Sony bought Gaikai in 2012 for $380 million. Like other corporations that buy game development companies, Sony acquired Gaikai to gain access to its talent pool and exclusive game rights for its bestseller. PlayStation gaming console. The company’s engineer is responsible for Sony’s PlayStation Now cloud gaming platform.