Hi Billy, Do these guys still need help, or did they find someone over the weekend???
ct: C-Cube
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To: Tim McCormick (25546 )
From: Bill DeMarco
Friday, Nov 21 1997 7:54AM EST
Reply #25547 of 25639
Here's the full text from Tim's post....
Sony Hires Blackstone to Aid
In Search of the 'Digital Dream'
By EBEN SHAPIRO
Staff Reporter of THE WALL STREET JOURNAL
Sony Corp., fearful of being left behind in the fast-changing entertainment
and consumer-electronics businesses, said it is examining "numerous
opportunities created by the digital revolution," signaling that the Japanese
consumer-electronics giant may be eyeing new acquisitions in the
converging media and technology businesses.
Sony announced that it retained investment-banking concern Blackstone
Group to help in its review. "Sony President Nobuyuki Idei has coined the
phrase 'Digital Dream Kids' to reflect Sony's corporate culture for the 21st
century," said Blackstone's President and Chief Executive, Stephen A.
Schwarzman. "Our role at Sony will be aimed at helping them identify the
right strategic opportunities to help achieve their digital dream."
Almost a decade ago, Blackstone advised Sony
on the acquisitions of CBS Records, now Sony
Music, and on the purchase of Columbia
Pictures Entertainment Inc., which is now
called Sony Pictures. Peter G. Peterson,
Blackstone's chairman, is on Sony's board of
directors. While it is thus not surprising that
Sony retained Blackstone, it is an indication that Sony feels pressure to
make a significant move.
Sony has explored a number of possible deals in recent years, but has
backed away from several. Entertainment executives said that Sony, in
partnership with Tele-Communications Inc.'s Liberty Media unit, recently
made a bid for Spanish-language television network Telemundo Group Inc.
Telemundo said in August that it had engaged investment banker Lazard
Freres & Co. to help evaluate possible "strategic transactions" with
entertainment firms. Sony and TCI declined to comment on Telemundo.
After taking a $3.2 billion write-off related to its film operations in 1995,
Sony last year hired Credit Suisse First Boston Corp. to evaluate options for
raising cash for its entertainment operations, including a possible public
offering in the movie operations. Thursday, the company stressed that
retaining Blackstone was not related to a movie-unit stock offering and said
the company is not actively considering selling shares in its movie business.
Sony said it is still working with Credit Suisse on entertainment matters.
Howard Stringer, president of the Sony Corp. of America unit, said it was
"premature" to speculate on the magnitude of investment that Sony is
prepared to make in U.S digital businesses. "We have to identify
transactions before we make them," he said.
Unlike rivals which own movie studios, Sony has no investment in
distribution such as cable systems or a broadcast or cable network. Because
it is a foreign company it faces certain restrictions to the ownership of U.S.
broadcast properties. Sony and other big Japanese electronic companies
have also largely missed out on the first wave of product development for
the Internet-set-top boxes, and high-speed cable modems -- which has
largely been driven by nimble U.S. start-ups.
Sony is trying to jump-start its efforts at a critical time, with Microsoft Corp.
and other U.S. media and technology giants vying to control the design of
key technologies that will deliver interactive services to consumers' homes.
Sony, one of the world's leading makers of television sets, wants to make
sure Sony products play a key role as demand for such services seems
poised to explode.
Since taking the helm of Sony in 1995, Mr. Idei is credited with leading a
remarkable turnaround of the Japanese electronics giant, sharply improving
its financial performance. In addition, Sony's once-troubled Hollywood studio
is having a record year, driven by hits like "Men in Black."
But Mr. Idei has been pushing hard for Sony's staid consumer-electronics
executives to focus on the vast new product potential of youth-driven
markets like the Internet and digital communications.
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