Sony Merger A great deal of companies and corporations, whether diminutive or immense, merge to become one company. Mergers and acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. For instance, the Merger between Sony and MGM in 2005, Sony even took the debt from MGM. The purpose of this paper is to discuss the following: company history on both companies, the merger, price paid, debt, movies, contract, stock price, benefits, lawsuits, communication and money conversion.
Sony history Sony Company
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From the end of the silent film era through World War II, MGM was the most prominent motion picture studio in Hollywood, with the greatest output of all of the studios: at its height, it released an average of one feature film a week, along with many short subjects and serials. In 1924, Marcus Loew had a problem, he bought Metro Pictures (founded in 1916) and Goldwyn Pictures (founded in 1917) to provide a steady sup[ply of films for his large theater chain, Loews Inc. However, these purchase created a need fro someone to over see his new Hollywood operations. Loew addresses the situation by purchasing Mayer Pictures on April 16, 1924. Because of his success as a producer, Louis B. Mayer was made a vice-president of Loews and head of studio operations in California, with Harry Rapf and twenty-five year old "boy wonder" Irving Thalberg as heads of production. For decades, MGM's legal name was "Loews Inc." Originally, the new studio's films were presented in the following manner: Louis B. Mayer presents a Metro-Goldwyn picture, but Mayer soon added his name to the studio. Though Loew's Metro was the dominant partner, the new studio inherited Goldwyn's studio, the former Goldwyn mascot Leo the Lion , replaced Metro's parrot symbol and the corporate motto Ars Gratia Artis wich means "Art for Art …show more content…
The acquisition was finalized in April 8th of 2005. The MGM group it was the last major independent studio in Hollywood and in the past few years was not doing so well, the most successful movies in the past few years was James Bond since then the company's creativity in movies has decreased. Therefore, it was for the best interest of the company to be purchased by Sony and partners.
Movies
Some of the movies that MGM produced in the earlier years were The Covered Wagon (1923)), Robert Flaherty's Nanook of the North (1922) The Mark of Zorro (1920) Robin Hood (1922), The Thief of Bagdad (1924), The Black Pirate (1926) Sparrows (1926). The Iron Mask (1929). The Taming of the Shrew (1929). Coquette (1929), The Torrent (1926), The Temptress (1926). Flesh and the Devil (1926). Street of Forgotten Men (1925). Of course who could forget the 007 Bond movies.
Contract
Stock
...e the Gambler part 1, Directed by Fritz Lang 1922, Youtube Video, 2:02 , Accessed May, 14, 2014 https://www.youtube.com/watch?v=IqglLUaOUvc
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
Columbia Pictures, 1998. Laclos, Choderlos de. Dangerous Liaisons. London: Penguin Classics, 1961.
MGM’s name was derived from the three subsumed companies: Goldwyn Pictures, Metro Pictures, and Louis B. Mayer Productions (Hanson para 2). MGM was formed under the finance of Marcus Loew (Collins para 1). Marcus Loew merged Metro Pictures and Goldwyn Pictures on April 17, 1924. After he bought the two companies he went after Louis B. Mayer Productions; he bought the company for $75,000 (Hay 15). Louis B. Mayer was chosen to be the vice president-general manager of Metro-Goldwyn-Mayer (Collins para 1). The new studio resided in Culver City, California on Goldwyn Pictures’ old lot (Collins para 3).
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
Classic film noir originated after World War II. This is the time where post World War II pessimism, anxiety, and suspicion was taking the world by storm. Many films that were released in the U.S. Between 1939s and 1940s were considered propaganda films that were designed for entertainment during the Depression and World War II. During the 1930s many German and Europeans immigrated to the U.S. and helped the American film industry with powerf...
(Paris, 1932).
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
Gomery's history tells the story of a 'tale of two systems 'using primary materials from a score of archives across the United States as well as a close reading of both the business and trade press of the time. Together with a range of photographs never before published the book also features over 150 box features illuminating aspect of the business . During the 1920s, and 1930s the Hollywood film studios undertook a ... ... middle of paper ... ... (1936).
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
Christie, Ian (1 August 2012). "The Top 50 Greatest Films of All Time". Sight & Sound. British Film Institute. Retrieved 12 May 2014
Two new managers have been appointed at Sony in the last 15 years due to a number of developing problems, including the innovation ‘cogs’ within Sony slowing down, being forced into an aggressive pricing strategy, increased competition, losing the battle of VHS and Betamax, profit and sales remaining flat and the ongoing poor performance of Sony films (Mintzberg et al, 2003). Both managers initiated major strategic changes with varying degrees of success; firstly Nobuyuki Idei was appointed and initiated a major shift from analogue to digital technology, as there was a belief that Sony was falling behind the market in this respect. Idei also targeted the top position in the audio and visual industry, a universal standard in home computer devices and a new distribution infrastructure. He believed his job was the ‘regeneration of the entrepreneurial spirit’ (Mintzberg et al, 2003), believing it had been lost.
In 1960, the Sony Corporation of America was established in the United States. In 1961, the Sony Corporation of America was the first Japanese company to be listed on the New York Stock Exchange. Sony bought Columbia Records and other CBS labels in 1988 and Columbia Pictures in 1989.
Philips’ major rival, Matsushita, started as a small electrical house-ware manufacturer in 1918. The company expanded rapidly and soon introduced a flood of new products. By the end of the century, Matsushita grew into a global player with powerful brand names such as Panasonic, Quasar Technics, and JVC.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.