Sony Corp share price up, cancels “The Interview” release on threats

Sony Pictures Entertainment canceled the release of its Kim Jong Un comedy “The Interview” after five of the biggest US cinema chains said they would not display the movie.

Cinemark, AMC, Regal Entertainment and Cineplex followed Carmikes decision to not screen the comedy, which was set to be released at Christmas Day. However, it wont reach the big screens due to “the ambiguous nature of any real or perceived security threats”, Carmike said in a statement. The companies also removed the movie from anything that comes close to cinemas, including shopping malls and retail outlets.

“We are deeply saddened at this brazen effort to suppress the distribution of a movie, and in the process do damage to our company, our employees, and the American public,” Sony said in a statement. “We stand by our filmmakers and their right to free expression and are extremely disappointed by this outcome.”

Sony was forced to scrap the release due to threats issued by the same group that hacked its computer network and leaked emails of Sonys top executives and sensitive personal information about its employees, including pay, performance reviews and health-care records among other data. US officials have linked the cyber attack to North Korea.

“We respect and understand our partners’ decision and, of course, completely share their paramount interest in the safety of employees and theatergoers,” Sony said.

The decision to cancel its $42-million movie was taken by the companys Los Angeles Studio, and not Tokyo, which was informed after the fact. The comedy was projected to generate around $90 million in US ticket sales, according to BoxOfficeMojo.

Starring Seth Rogen, the movie is about a television host who gets an interview with Kim Jong Un and is later recruited by the CIA to assassinate the North Korean leader.

The title attracted a lot of attention from North Korea, its UN ambassador sent a letter to the UN, complaining about the movie and saying it is an “undisguised sponsoring of terrorism” and it should be regarded as an “act of war.”

Despite speculations that Sony would try to cut its losses by a video on demand release, it “has no further release plans” said a spokeswoman for the company.

Sony Corp gained 1.46% on Wednesday and an additional 4.80% on Thursday to close at ¥2 478.5 in Tokyo, marking a one-year increase of 39.24%. The company is valued at ¥2.68 trillion. According to the Financial Times, the 17 analysts offering 12-month price targets for Sony Corp have a median target of ¥2 850, with a high estimate of ¥3 700 and a low estimate of ¥1 750.