Resignation puts Sony's US arm in doubt
Beat it: Coup shifts the power centre of beleaguered music business back to Japan
Thursday 07 December 1995
Mr Schulhof, who engineered Sony's move into the entertainment industry at the end of the Eighties, was ousted from his position as president and chief executive of the Sony Corporation of America late on Tuesday.
The removal of Mr Schulhof in effect shifts the power centre in Sony's US subsidiaries back from America to Sony headquarters in Japan. No successor has been named and Mr Schulhof's responsibilities will pass to management in Tokyo, led by Sony's new president, Nobuyuki Idei.
On Wall Street, meanwhile, speculation was rising that Sony may be tempted to find new investors for its film and music units or even unload them entirely. "It's more likely now that they'll spin off the movie and music operations," suggested Dennis McAlpine of Josephthal Lyon & Ross.
Mr Schulhof led Sony into the entertainment business, first with the acquisition in 1988 of CBS Records for $2bn and, a year later, with the $5bn purchase of Columbia Pictures Entertainment Inc.
Analysts calculate that today the combined entertainment interests may be worth no more than $8bn, not much more than the company's original investments.
Nor has Sony's foray into Hollywood been happy. Last year the company revealed that it had accumulated $3.2bn in write-offs and losses in its movie studios. Although the film division has since picked up a little, it has had no big hits. Sony Music has also faced hard times recently, its share of the US market dipping to 13.6 per cent from 17.3 per cent in 1993. Most recently, it was hit by the disappointing performance of Michael Jackson's latest album, HIStory.
Mr Schulhof, 53, said he was leaving Sony because he wanted to "explore a new enterpreneurial role outside of the corporation and I am eager to get on with it".
Any attempt by Sony to draw in its horns in Hollywood would represent another chapter in the humbling of Japanese corporations faced with disappointing American investments.
- 1 The political parties aren't all the same – which means 2015 will be a 'big-choice' election
- 2 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
New York police shooting: thousands turn out for the funeral of Rafael Ramos
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Millions of Britons struggling to feed themselves and facing malnourishment
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...