If Sony Pulls ‘The Interview,’ Losses Will Hit Tens of Millions of Dollars

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By Douglas A. McIntyre Published
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Among the demands made by hackers who broke into the online systems of Sony Pictures is that the company not release “The Interview,” a movie that makes fun of North Korean leader Kim Jong-un. The film could easily bring in $100 million in the United States and more overseas.

“The Interview” stars two of Hollywood’s more bankable actors — Seth Rogin and James Franco. Box Office Mojo predicted the movie starring the two will bring in $90 million over the course of the holidays. “The Interview” is scheduled to be released on Christmas Day.

Editors at Box Office Mojo pointed out:

The Interview arrives seven months after Neighbors, which became star Seth Rogen’s highest-grossing live-action movie ever with $150.1 million. It also marks the second directorial outing for Rogen and Evan Goldberg after last Summer’s This is the End, which also topped $100 million.

Based on the elaborate sets in the movie and the amount the two stars were likely paid, “The Interview” could have cost as much as $50 million to make. That would leave Sony Corp. (NYSE: SNE) in a large financial hole if the movie is not released.

Sony’s dilemma does not have a precedent. Hackers have dug so deep into Sony Picture’s digital storage that threats against employees have a chance of being true. And the hackers may have more records about Sony Pictures operations, and details about executives and stars, that the release of this additional information could cause more terrible damage. There is a chance that versions of some of Sony Picture’s other movies could be released prematurely and distributed on filing sharing services — another threat to sales and profits.

Sony may have to pull “The Interview” if the progress the hackers have made spreads. The studio’s short-term future is at stake, and it as few if any options.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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