The entertainment unit of Sony Corp was approached over a potential $7 billion financing offer from a group that was allegedly linked to royalty from the Middle East. This information was based on documents that were released by hackers that broke into the Sony's computers.
The proposal said that the investors who are still unidentified would commit $6 billion of debt and equity financing to fund Sony's film production. This was on a November 1 email that was hacked from Sony Pictures Motion Picture Group's chief financial officer, Stefan Litt. The alleged plan also involved purchasing of $1 billion in Sony stock.
According to insiders, the executives of the company had held preliminary meetings with representatives of the investors. Meantime, while the officials of Sony were interested in the proposal, the structure was really unusual and the parties had never agreed on terms for formal negotiations. Sony executives were also concerned about the anonymity of the investment group that potentially wanted to invest in the company. According to the e-mails, the potential investors were represented by International Investment Group Holdings and Serendipity Investment Group.
The source continued that the plan was no longer considered at the moment.
In a letter from the president of Sony Pictures Entertainment, Doug Belgrad, "While we deeply appreciate your efforts to revise the proposed LOI (letter of interest), we will be unable to execute this version by your deadline." Belgrad continued, "I realize this proposal appears to be a financial unicorn, but thank you all for spending time on this."
The e-mails are just part of the revelations coming out of the surprising hacks. The hackers were also able to get other information such details of their employees' salaries, health records, movie stars' fees and private e-mails. The hackers have released at least eight batches of private data and promised more leaks on Christmas.
Sony Pictures' spokesperson had declined to comment on the issue.
