In 1989, Sony acquired Columbia Pictures for $4.8 billion (then 670 billion yen). Why did the acquisition, known as "the biggest mystery in Sony's history", be implemented? Mr. Shiro Koriyama, who was the head of Sony's Management Strategy Division at the time, said, "The real purpose of the acquisition is to deepen exchanges with the political and financial circles in the United States."
In September 1989, Sony, accused of "buying American souls like crazy," acquired Columbia Pictures. It was at the height of Japan's bubble economy, and Japanese companies followed suit, buying up American studios. Panasonic, JVC, Vanguard, Toshiba, trading companies, etc. have all invested heavily in Hollywood.
That's the same as Mitsubishi Properties' ownership of Rockefeller Center in Manhattan, which has been accused of "Japanese companies buying America's soul like crazy," prompting a lash against Japan. "Sony's acquisition of Colombia is an atrocity", accusing not only American society and the media. There is also a lot of opposition within the company.
It was not worth buying for $4.8 billion (670 billion yen at that time), it was impossible for the layman Sony to make money in the film business, what if it was an enemy of the American people, and other products could not be sold ... It has been criticized from all sides. Compared with the establishment of CBS Sony Records, a joint venture with CBS in the United States in 1968, it is also a cultural information industry, and its significance and amount are completely different. There is no guarantee of benefits like music.
Why did Sony buy Columbia Pictures?
Since then, there have been many skeptical voices, and some people still describe it as "the biggest mystery in Sony's history". In the Sony books published later, there was hardly a sharp explanation. The statement that "hardware and software are the two wheels of business" is nothing more than superficial rhetoric. Actually, I was in charge of that acquisition drama. As the head of the Management Strategy Division, he is responsible for actual operations.
Despite its popularity, it was excluded, and when I received the instruction to acquire Colombia, I remembered Mr. Morita's words.
"I've lived on Fifth Avenue for so many years that I've never been invited to a local gathering with politicians and business people. Sony is not yet a first-class company in the United States. ”
Sony products have been in the US market for 30 years. In 1960, a local subsidiary was established, and in 1970, it became the first Japanese company to be listed on the New York Stock Exchange. Mr. Morita lives in a high-end apartment on Fifth Avenue and has a wide network in the American economic circle, and "Sony's Morita" is a celebrity. It should be the most well-known among business people in Japan.
However, he was never invited to a banquet in the financial world. For example, New York's financial circles would charter the Metropolitan Museum of Art for a big party. VIPs from politics and finance gathered together, and Mr. Morita was never invited. That is, although there are business contacts, they have not yet been recognized as partners.
Access to local communities is not possible through economic capacity alone. Even Arab oil kings are not invited to parties. No matter how hard Mr. Morita tried, he was unable to join.
Banqueting is part of diplomacy
"But there is a way, and that is to bring Hollywood actresses."
If the wife is a Hollywood actress, she is invited to the party. Even if I am a small girl, because I am a husband and wife, I will bring Hollywood actresses. His target was not himself, but his wife. Even so, Mr. Morita, who has a husband, cannot marry a Hollywood actress. Then go and be the boss of a movie company.
His goal is that as long as he receives the praise of "as long as he invites Morita, he can bring Hollywood actresses", he can be invited to various parties. Film companies are a special presence in American society. Film is an industry that originated in the United States and is the pride of American culture itself. Different from the positioning of cars and electrical products. Therefore, after the acquisition, it will be attacked as "buying the soul of the United States."
Of course, Mr. Morita does not come to the party with a "niche" mentality, nor does he hate being isolated. I want Sony to be an American insider. In addition, if it becomes an insider, Sony can also moderate the anti-Japanese sentiment of the American people. This is excellent diplomacy.
Akio Morita's flamboyant manners were for business, and he was evaluated as a rare international businessman in Japan.
In 1971, he appeared on the cover of the weekly American magazine Time, and in 1988, a photo of him hugging Cindy Roper appeared on the cover of The New York Times. He was so close to Michael Jackson that he was even called "The Teacher".
Mr. Morita is not fluent in English. Nevertheless, because the content is interesting, everyone listens attentively. It's like listening to lectures and lectures from speech experts. However, Mr. Morita himself does not like grand social events. As far as I know, his usual life is very simple.
Mr. Morita's hometown is in Aichi, and he has been a brewery since the early Edo period, and his eldest son, Mr. Morita, is the 15th generation head of the household. When foreign guests visit Mr. Morita's house, meals are served one by one. Madame Ryoko did not sit at the same table. Mr. Morita sits with his back to the alcove in a kimono. It's like a historical drama.
The flamboyant manners of international people are all done because they are necessary. Becoming the boss of a film company that the United States is proud of, joining the circle of politics and finance, and the commercial benefits in terms of contacts and information are immeasurable.
The best talent continues to pour into Sony
After the acquisition of Columbia, Mr. Morita's expectations were exactly as he expected. Sony is recognized as a leading American company, and Mr. Morita has acquired a large stake as a founder. Not only was he invited to a banquet for financial figures, but he also received an invitation to the ceremony from the White House. And by-products that I didn't even think about.
Sony's U.S. subsidiary began hiring top talent. Before that, there were no graduates from Harvard or MIT, but now there are many graduates from prestigious universities entering the company. Sure enough, it is a company that has the soul of the United States - a film company, and such an evaluation must be very large.
The brand of a famous company cannot be bought by money alone. In order to integrate into American society, becoming a member of the boss in Hollywood is a shortcut, and Mr. Morita is right.
The "purpose" of the acquisition of Columbia Pictures was not to make money in the film business, but to improve Sony's position in the United States. But when people in the company asked, "What do you want to buy Columbia movies for?" and I could simply say, "Hardware and software."
Of course, Mr. Morita also hopes that Colombian films will be a big hit. However, that is not the "purpose".
"I also want to get insurance and raise money."
Sony's involvement in life insurance, banking and other financial businesses is also a necessary "means" for Mr. Morita.
In 1979, Sony established a joint venture with Prudential Life Insurance and began its financial business. This is now Sony Life Insurance. In 2001, Sony Bank was established. Mr. Morita began to focus on financial business from an early age.
Some people say that Mr. Morita "actually wanted to open a bank from the beginning," but I know that Mr. Morita was interested in insurance in the 60s. When Mr. Morita and I worked together in the United States, we took a break over coffee. Mr. Morita looked around the tall buildings and whispered.
"No matter where I go, the biggest and most beautiful building is an insurance company, and I want to do insurance to raise money."
At that time, we were busy selling commercial video recorders, and we were busy selling them at various companies. When manufacturers of tape recorders and video recorders started buying insurance, I thought it was "ridiculous." When I was still a singer, I knew Sony started the life insurance business. I was surprised, "Would Mr. Morita really do what he said at the time?"
In order to realize Mr. Inofuki's dream, Mr. Morita built an epoch-making head office building even under very difficult management conditions, and from the beginning of Sony's founding, Mr. Morita's most difficult thing was capital turnover and popularity.
It takes cash to develop and sell Sony-style products, and no one would buy without Sony's brand. Especially in terms of funds, there have been several crises that have caused people to worry about bankruptcy, and it seems that they have suffered a lot.
Mr. Morita is not good at accounting and finance. Sony has a group of excellent accountants who come from their hometown brewing company. When the company was founded, my father said that "it is difficult to turn over funds", so he sent a few trustworthy treasurers. His father, Mr. Kuzoemon , the 14th generation head of the household, entered Nagoya from Kozuya on the Chita Peninsula and seems to have suffered a lot in terms of capital turnover and sales development. Probably because he knew the hard work of making money, he sent such an excellent dispenser to the newly established Sony.
In an era when Sony was struggling with money, Mr. Morita's family received financial assistance, and there was even a time when Mr. Morita's family was Sony's largest shareholder. When the "Sony Building" was established in Ginza Gochome, business conditions were in trouble. The Sony Building caused a sensation when it opened in 1966 and contributed greatly to the enhancement of the Sony brand.
Modernist architecture, Japan's fastest elevator, and an electronic billboard with 2,300 picture tubes on the exterior walls have made Ginza a new tourist spot. The level of visibility is related to sales power, and it takes money to increase popularity. In order to achieve his goal, Mr. Morita will do everything he can.
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