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The case discusses the acquisition of the US-based Columbia Pictures (now known as Sony Pictures Entertainment) by Sony Corporation, Japan. The case focuses on the various problems faced by Sony Pictures Entertainment (SPE) on account of poor corporate governance, mismanagement and differences between the Japanese and American management cultures, in the first five years after Sony''s acquisition of it. It examines the various initiatives taken by Sony to revive the financial and business performance of SPE. The case explores the future of SPE in the light of its failure to realise the synergies identified prior to the acquisition, the highly risky movie business and impending problems at Sony''s electronics division. The case is designed to enable students to: (1) identify the issues that should be addressed for making cross-border acquisitions successful; (2) understand the importance of correct identification of synergies in case of acquisitions; (3) examine the costs and the problems involved in a cross-border acquisition; (4) understand the impact of cultural mismatch on the business performance of the acquired company; (5) analyse the approach that can be adopted for solving the problems that surface after the acquisition of a company; (6) determine the synergies between the electronics (hardware) and movie (software) business; and (7) analyse the impact of convergence in the information, communication and entertainment industry on electronics companies like Sony. The case is intended to be part of the strategy and general management curriculum.