Sony Group President Hiroki Totoki expressed interest in acquiring new businesses but refrained from commenting on reports of a deal with Paramount Global. Speaking at the company’s annual shareholder meeting in Tokyo, Totoki emphasized the company’s interest in intellectual property and creative assets.
“We are paying attention to people and technology that can create good works,” Totoki stated, noting Sony’s shift towards the creative sector. He suggested that the company prefers strategic, quality acquisitions over large-scale mergers and acquisitions, aligning with their objectives and asset quality.
Totoki also addressed frustrations regarding media speculation on Sony’s acquisition strategies. “Various media reports have been released, and it’s actually not something we have released,” he said, emphasizing that the company does not intend for its stock price to be influenced by such reports.
Sony has seen significant returns from its aggressive investments in entertainment and image sensor businesses, achieving a consolidated adjusted EBITDA of 5.1 trillion yen ($31 billion) over the past three years, surpassing its goal of 4.3 trillion yen. The new midterm management plan, spanning fiscal 2024 to 2026, allocates 1.8 trillion yen for strategic investments.
Recent acquisitions include Sony Pictures Entertainment’s purchase of the U.S. theater chain Alamo Drafthouse. Reports also suggest that Sony and U.S. investment fund Apollo proposed a $26 billion acquisition of Paramount Global in May, while a deal with Indian broadcaster Zee Entertainment was terminated earlier this year.
Sony’s new management plan focuses on profitability, aiming for a 10% annual growth in operating income, excluding its financial business. The plan highlights the importance of raising investment efficiency and maximizing synergies across the group.
