Sony's Outgoing CEO Kenichiro Yoshida Calls This $4 Billion Deal The 'Most Impressive' In Company History

Sony Group Corp. SONY chairman Kenichiro Yoshida, who is set to transition from his role as CEO in April, said the acquisition of EMI Music Publishing was Sony's most significant investment.

What Happened: On Thursday, during Sony's third-quarter earnings call, Yoshida was asked to evaluate Sony's investment strategy and highlight its most important deals.

"The most impressive investment for Sony’s management was in 2018, the EMI Music Publishing," Yoshida said, adding, "That acquisition was most impressive to me. $4 billion investment was made."

He credited Hiroki Totoki, Sony's current President and incoming CEO, for handling the negotiations. "The negotiation was mostly done by Mr. Totoki personally," he added.

Yoshida also said that Sony's portfolio is constantly evolving and requires ongoing monitoring and restructuring. "For some time, when I look at the portfolio, it’s not static, it’s more dynamic. That’s how I perceive the portfolio structure," he said.

Why It's Important: In 2018, Sony acquired EMI Music Publishing for $2.3 billion, strengthening its position as the largest music publisher.

The deal included rights to songs by artists like Queen and Pharrell Williams and expanded Sony's collection by adding 2.1 million EMI tracks to its existing 2.3 million.

Meanwhile, the parent company of PlayStation reported an 18% year-on-year rise in fiscal third-quarter sales. Revenue reached $28.97 billion (4.41 trillion yen), surpassing analysts’ estimate of $23.78 billion.

Music revenue increased 14% year-over-year, reaching ¥481.7 billion.

Price Action: As of the last check on Friday, Sony shares were up 3.97%, trading at $24.11 in premarket, according to data from Benzinga Pro.

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