Sony Pictures CEO Ravi Ahuja Says No Plans for ‘Extremely Disruptive’ Large Scale M&A

Sony Pictures CEO Ravi Ahuja says the studio has no plans to prioritize “large-scale M&A,” warning that it could be “extremely disruptive” to the company’s business. “It’s extremely disruptive when you end up with a large company that has lots of different businesses. You can spend years on that type of project,” Ahuja told an investor conference hosted by Bank of America on Wednesday. “In the end, you come out having just achieved a lot of cost synergy and I’m not sure the business is necessarily stronger.” He emphasized that the process of getting a deal approved and the associated integration work “sets you back for years.” “This industry is dynamic and evolving and you really have to position yourself for how it’s going to evolve over the next five to 10 years and not just drown in M&A, particularly when I am doubtful of having increased scale and content creation making a big difference. These companies are not factories,” Ahuja added. “I don’t think there’s anything in particular that I say ‘we must have this asset that sits out there’.” Ahuja’s comments come after Sony teamed up with Apollo to make a bid for Paramount, but ultimately lost out to Skydance’s David Ellison. Following the Paramount acquisition, Ellison subsequently went after Warner Bros. Discovery, with that $110 billion deal now stuck in limbo due to an ongoing lawsuit from a group of 12 state attorneys general. Ahuja clarified that the bid for Paramount was consistent with Sony’s focus on increasing its IP and capabilities in areas like live experiences. “We’ll always look for IP and put more money into IT as it becomes available. We are redoubling our efforts organically in things like video game adaptations, anime, areas where we lead,” Ahuja said. “And then in terms of capabilities, we’ve got experiences and efforts that we’re making in YouTube and other short form platforms.” Sony’s recent investments include acquiring a majority stake in “Peanuts” for $457 million and a $100 million minority investment in the immersive entertainment company Cosm. More to come…