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Synergy Is Very Hard to Achieve

Synergy Is Very Hard to Achieve Sony, a large Japanese entertainment and electronics company, for many years struggled to get synergy across its various arms. It has video game consoles, a huge music catalog and access to intellectual property like the Spider Man brand. They also make movies, and now they own comics. Even though it owns a movie studio in the United States, Sony has experienced the challenge of not being able to get one asset to create value across all of the platforms at once. For example, let's say it launched a great Spider Man movie. Theoretically, it should have a soundtrack generating a lot of money in the music catalog, a Spider Man game creating a lot of value in the gaming universe, and a Spider Man comic creating a lot of value in the comic world. Synergy is hard to achieve, but it’s what companies undertaking an acquisition or merger talk about a lot. You have to understand that the cost side of synergies is relatively easy to calculate. When a CEO says synergies are worth 800 million a year, recurring for five years, and you ask them to break that down, you should be very…

Synergy Is Very Hard to Achieve Sony, a large Japanese entertainment and electronics company, for many years struggled to get synergy across its various arms. It has video game consoles, a huge music catalog and access to intellectual property like the Spider Man brand. They also make movies, and now they own comics. Even though it owns a movie studio in the United States, Sony has experienced the challenge of not being able to get one asset to create value across all of the platforms at once. For example, let's say it launched a great Spider Man movie. Theoretically, it…

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