Sony Pictures Hack
Darth Gupta
Sony Pictures Entertainment Inc. (commonly known as Sony Pictures or SPE, and formerly known as Columbia Pictures Entertainment, Inc.) is an American diversified multinational mass media and entertainment studio conglomerate that produces, acquires, and distributes filmed entertainment (theatrical motion pictures, television programs, and recorded videos) through multiple platforms. Through an intermediate holding company called Sony Film Holding Inc., it is operated as a subsidiary of Sony Entertainment Inc., which is itself a subsidiary of the multinational technology and media conglomerate Sony Group Corporation.[5][6]
On September 1, 1987, The Coca-Cola Company announced plans to spin off Columbia Pictures, which it had owned since 1982. Under this arrangement, Coca-Cola would sell its entertainment assets (Coca-Cola's Entertainment Business Sector) to TriStar Pictures, of which it owned 39.6%. Tri-Star would be renamed Columbia Pictures Entertainment, Inc. (CPE), with Coca-Cola owning 49%, its shareholders owning 31%, and Tri-Star's shareholders owning 20%.[8][9] As part of a merger plan, the two television businesses, comprising Columbia/Embassy Television and Tri-Star Television, merged altogether to form a new incarnation of the original Columbia Pictures Television.[10]
The merger enabled three top Tri-Star executives, namely Arnold Messner, who ran Tri-Star Telecommunications, Victor A. Kaufman, who ran the main Tri-Star Pictures studio, and Scott Siegler, who ran Tri-Star Television to stay on, while four of the Coca-Cola Entertainment Business Sector departed, namely Barbara Corday, who ran Columbia/Embassy Television as president, Herman Rush and Peter Seale, who ran Coca-Cola Telecommunications, and Brian McGrath, who was the president of the Coca-Cola Entertainment Business Sector.[11] In early December 1987, former Coke EBS vice president Kenneth Lemberger exited the post to join Tri-Star Pictures, displacing Roger Faxon, who had joined Columbia Pictures as senior vice president of the studio.[12]
The merger was approved by shareholders on December 15, 1987, and it was completed two days later. Columbia and Tri-Star brands would be used as separate and autonomous production entities, and would be part of CPE whole, along with the prior assets, units and commitments of the former Coca-Cola Entertainment Business Sector, which included all feature, TV, home video, and pay cable operations as well as the Entertainment Sector's feature production deal with Nelson Entertainment and its investment in Castle Rock Entertainment, and TeleVentures; a company it continues to own, which was linked to three independent companies: Tri-Star Pictures, Stephen J. Cannell Productions and Witt/Thomas Productions. Merv Griffin Enterprises continue to function as a separate operation.[13] A new company was formed in early 1988 with the Tri-Star name to take over the studio's operations.[14]
In early January 1988, CPE announced that they would revive the Triumph branding for the new worldwide subsidiary, Triumph Releasing Corporation, which was functioned as a theatrical distributor, marketing and promotion for Columbia and Tri-Star films, and named Patrick N. Williamson as president of the unit and the company provided administrative services related to distribution of its films in North America, while internationally, would be responsible for the direction of each studio.[15]
On September 28, 1989, Sony obtained an option to purchase all of The Coca-Cola Company's stock (approximately 54 million shares or 49% of the outstanding shares) in CPE for $27 per share.[16] The next day, Sony also announced that it reached an agreement with Guber-Peters Entertainment Company, Inc. (NASDAQ: GPEC; formerly Barris Industries, Inc.) to acquire CPE for $200 million when Sony hired Peter Guber and Jon Peters to be its co-chairmen.[17] This was all led by Norio Ohga, who was the president and CEO of Sony during that time.[18]
The hiring of Guber and Peters by Sony to run Columbia was conflicted by a previous contract the producers had signed at Warner Bros. Time Warner's chairman, Steve Ross, threatened Sony with a lawsuit for breach of contract. The lawsuit would be subsequently dropped when Sony sold half-interest in Columbia House and cable distribution rights to Columbia's feature films, TV movies, and miniseries to Warner Bros. That same agreement also saw Columbia sell its 35% interest in the Burbank Studios and acquired Lorimar Studios, previously the MGM lot, from Warner Bros.[19][20]
On October 31, 1989, Sony completed a friendly takeover bid for the rest of shares (51%) of CPE, which was a public company listed on the New York Stock Exchange (NYSE: KPE), and acquired 99.3% of the common stock of the company. On November 8, 1989, Sony completed the acquisition by a "short-form" merger of its wholly owned subsidiary Sony Columbia Acquisition Corporation into CPE under the Delaware General Corporation Law. Sony also completed a tender offer for shares of common stock of the Guber-Peters Entertainment Company on November 6, 1989, and acquired the company 3 days later. The acquisition cost Sony $4.9 billion ($3.55 billion for shares and $1.4 billion of long-term debt) and was backed (financed) by five major Japanese banks Mitsui, Tokyo, Fuji, Mitsubishi and Industrial Bank of Japan.[21][22][23]
The company was renamed as Sony Pictures Entertainment on August 7, 1991.[24][25] Also that year, Jon Peters left Columbia to start Peters Entertainment with a three-year exclusive production agreement at the studio at first, before transitioning to a non-exclusive deal at the studio.[26] Longtime CPE employee Laurie MacDonald also left to start Aerial Pictures at the studio, first for a two-year deal, before going to 20th Century Fox in 1993, and being swallowed up by Amblin Entertainment later that year, eventually setting up DreamWorks.[27]
Sony has since created numerous other film production and distribution units, such as creating Sony Pictures Classics for art-house fare, by forming Columbia TriStar Pictures (also known as the Columbia TriStar Motion Picture Group) by merging Columbia Pictures and TriStar Pictures in 1998, revitalizing Columbia's former television division Screen Gems.
This in effect re-united the MGM studio name, with the MGM main studio lot, although somewhat confusingly, the bulk of the pre-May 1986 original MGM library ended up at Time Warner via the Ted Turner-Kirk Kerkorian "Turner Entertainment Co." transactions. The post-April 1986 MGM library consists of acquisitions of various third-party libraries, such as the Orion Pictures catalogue, leading to MGM's 2014 remake of RoboCop.
In July 2000, a marketing executive working for Sony Corporation created a fictitious film critic, David Manning, who gave consistently good reviews for releases from Sony subsidiary Columbia Pictures that generally received poor reviews amongst real critics.[28] Sony later pulled the ads, suspended Manning's creator and his supervisor and paid fines to the state of Connecticut[29] and to fans who saw the reviewed films in the US.[30]
It expanded its operations on April 8, 2005, when a Sony-led consortium acquired the legendary Hollywood studio Metro-Goldwyn-Mayer (MGM), in a US$4.8 billion leveraged buyout, through the holding company MGM Holdings Inc.[31][32][33]
On January 22, 2014, SPE folded its technology unit into the various cores of its businesses.[42] In April, Sony Pictures arranged a film financing deal worth $200 million with LStar Capital, the credit venture of Lone Star Capital and Citibank, half in debt and the other in equity to fund most of SPE's film slate for several years. SPE was originally considering a $300 million deal with Blue Anchor Entertainment, led by Bloom Hergott partner John LaViolette and former investment banker & producer Joseph M. Singer, and backed by Longhorn Capital Management and Deutsche Bank, which was held up by regulatory matters.[43]
In April 2021, Sony signed a first-look deal with Netflix, allowing the streaming service to host their films following their theatrical runs and home media releases.[45] That same month, the company also entered into a multi-year licensing agreement with The Walt Disney Company for its films to stream across Disney's streaming and linear platforms, including Disney+ and Hulu.[46]
On November 28, 2022, it was announced that Legendary Entertainment reached a distribution deal with Sony to distribute its future slate of films. However, this deal does not include the Dune and MonsterVerse films as they will remain at Warner Bros. The deal came after the negative impact of the merger of Warner Bros.' parent company WarnerMedia with Discovery, Inc. to form Warner Bros. Discovery.[48]
On June 12, 2024, Sony Pictures acquired Alamo Drafthouse Cinema for a sum which are yet-to-be disclosed. This marked the first time in more than 75 years that a major Hollywood studio would own a theater chain, as the 1948 federal ruling from United States v. Paramount Pictures, Inc. prevented them from owning exhibition companies until 2020.[54][55] Alamo Drafthouse will continue to operate their film festival Fantastic Fest, which is included in the acquisition.[56]
In November 2014, the Sony Pictures computer network was compromised by a group of hackers named Guardians of Peace, disabling many computers.[57] Later the same week, five of Sony Pictures' movies were leaked, including some not yet released (such as Fury and Annie), as well as confidential data about 47,000 current and former Sony employees.[58][59][60] Film historian Wheeler Winston Dixon suggested that the hack, which exposed the inner workings of the studio, was "not a pretty picture," and served as a "wake-up call to the entire industry."[61] The hack also revealed some other documents, emails between Hollywood moguls referring to Barack Obama's cinematic tastes, a possible partnership with Marvel Studios for the inclusion of the superhero Spider-Man in Captain America: Civil War, which was later confirmed in February 2015, amongst others.[62][63] On December 16, the hackers issued a warning to moviegoers, threatening to attack anyone who sees The Interview during the holidays and urging people to "remember the 11th of September 2001".[64] On December 17, 2014, Sony cancelled the previously planned December 25 release of The Interview in response to hacker threats.[65]
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