Sony warns of $962 million loss for Pictures Division

LOS ANGELES - Sony Corp. said its Pictures Division will take an 'impairment loss” of $962 million in the three months to December, the third quarter of its financial year. But the Japanese giant insisted that its movie business is not for sale.

'Make no mistake. Sony Corp.'s commitment to SPE (Sony Pictures Entertainment) remains unchanged. The value of high-quality content continues to rise. As we have stated on many occasions, including at SPE's All Hands meeting at the end of last year, Sony Corp. sees SPE as a very important part of Sony group, and will continue to invest to achieve long-term growth and increased profits in this space,” Sony group chief Kazuo Hirai and Michael Lynton, Sony Pictures Entertainment's departing CEO, said in a joint statement accompanying the financial announcement.

The company described the write-down as a 'non-cash loss.” It said the loss was due to a number of factors past and present, including the purchase of the studio almost 30 years ago and the 'dramatic shifts in the home entertainment space.”

The write-down will be recorded as an operating loss in the company's quarterly and current-year financial figures. Sony will release its third-quarter figures Thursday, which also happens to be Lynton's final day as CEO.

He will serve as co-CEO with Hirai for the next six months to help find a successor and help with the transition.