Sony Announcement Causes .07% Stock Drop
Story by David Clark
The past few months have seen Sony Pictures Entertainment in the spotlight for all the wrong reasons. A recent hacking scandal that followed the release of The Interview has caused speculation within the industry regarding the company’s integrity and long term viability. Sony Pictures Entertainment is a mogul in the film industry and anything that significantly impacts Sony could affect the rest of the industry.
From out of Sony’s many plans to right the ship and please investors through restructuring comes todays latest news, Amy Pascal has tendered her resignation. One of the most revered female executives in the industry, Amy Pascal held the position of co-chairwoman of Sony Pictures Entertainment and chairwoman of Sony’s motion picture group.
Pascal has been in the center of the Sony hacking scandal. Activists targeted Sony due to the release of confidential emails from her containing remarks pertaining to high profile actors and even President Obama. Sony Pictures made a show of support for Pascal over the past few months and apologies have been issued to the offended parties. Still, despite the public support, contract talks between Sony and Pascal stalled. Whether the reason for her resignation was an inability to find terms for a new contract, or whether Sony decided a new direction would make for a better public image is not known.
Amy Pascal spent the majority of her career with Sony Entertainment. She helmed Sony’s film industry for years leading Sony to the pinnacle of the industry many times, most recently in 2012. Unfortunately for Sony 2013 and 2014 box office results have not lived up to the successes of previous years.
The news of Amy Pascal’s resignation did not seem to affect investors. The publically traded stocks dropped .07% after the announcement which is not a significant fall. Lack of movement might mean Sony’s attempts to restructure failed to impress investors. It might also mean investors trust the loss of Amy Pascal will not adversely affect the companies bottom line.
One explanation for the level stock adjustment could be the news of Amy Pascal’s new job. Despite her lack of judgement when writing the leaked emails she is a solid business minded individual. Sony is not letting her get very far. Amy Pascal has agreed to a four year commitment as lead in a new production company funded by Sony.
Interestingly, Pascal’s new position will likely see her involved with making some of Sony’s biggest planned films in the coming years.
Sources: NYTimes; Marketwatch
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