The head of Sony Pictures and Entertainment (SONY), Tony Vinciquerra, will step down from his role as CEO early next year and will transition to an advisory role. Vinciquerra will continue with Sony Pictures through 2025 as non-executive chairman. Ravi Ahuja, Sony Pictures and Entertainment’s President and COO, will assume the CEO role. Sony Pictures and Entertainment is a business division of Sony Corp. that produces movies, television, music, and games.
Vinciquerra’s Reign as CEO Was Fruitful
Under Vinciquerra’s leadership, Sony Pictures focused more on licensing its content to streaming platforms than launching its direct-to-consumer service. This approach allowed Sony to avoid the significant costs of establishing a streaming business. In fact, launching its own streaming platform has been an expensive affair for other media giants like Warner Bros. Discovery (WBD) and Disney (DIS).
This strategy of producing content for streaming platforms has been successful for Sony Pictures as evidenced by its Netflix (NFLX) hits such as Cobra Kai and The Crown. In addition, the company entered into a deal with Netflix in 2021 to sell its theatrical movies to the popular streaming platform.
Furthermore, the studio has had some solid hits this year, including It Ends With Us and Bad Boys: Ride or Die.
Ahuja Steps into Vinciquerra’s Role in a Time of “Chaos”
Ravi Ahuja will step into the role of CEO at a time that Vinciquerra recently described as one of “chaos” in the entertainment industry. Vinciquerra, while speaking at a Bank of America investor conference some time back, hinted at potential “mergers, bankruptcies, and sales” in the media industry. However, Vinciquerra noted in an interview that “the demand for entertainment is going up, and it’s a good business to be in.”
Is SONY Stock Good to Buy?
Analysts remain cautiously optimistic about SONY stock, with a Moderate Buy consensus rating based on a unanimous two Buys. Over the past year, SONY has increased by more than 15%, and the average SONY price target of $108 implies an upside potential of 11.8% from current levels.
