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Abstract

Sony forayed into the entertainment business in the late-1980s by acquiring CBS records and Columbia Pictures. To further strengthen its motion picture business that became profitable only after the mid-1990s, Sony went ahead to acquire a leading film studio in the US - Metro- Goldwyn-Mayer (MGM). Investing $300 million in the acquisition, Sony planned to ensure the long-term growth and profitability of its motion picture business with the help of MGM''s vast library of movies and television episodes, besides creating synergies between its technology and entertainment businesses. The case study, while highlighting Sony''s strategy to sustain the competitive edge in its entertainment and consumer electronics businesses, provides the scope to discuss the integration issues entailed therewith.
Location:
Other setting(s):
2004

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Abstract

Sony forayed into the entertainment business in the late-1980s by acquiring CBS records and Columbia Pictures. To further strengthen its motion picture business that became profitable only after the mid-1990s, Sony went ahead to acquire a leading film studio in the US - Metro- Goldwyn-Mayer (MGM). Investing $300 million in the acquisition, Sony planned to ensure the long-term growth and profitability of its motion picture business with the help of MGM''s vast library of movies and television episodes, besides creating synergies between its technology and entertainment businesses. The case study, while highlighting Sony''s strategy to sustain the competitive edge in its entertainment and consumer electronics businesses, provides the scope to discuss the integration issues entailed therewith.

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Location:
Other setting(s):
2004

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