Michael Lynton to Become Sony Corp. of America CEO

The studio executive is expected to add oversight of Sony's entertainment assets as early as next week

Michael Lynton is expected to be named  Sony Corp. of America CEO, according to an individual with knowledge of the situation.  

Lynton's promotion is part of a larger shift in the leadership structure of the sprawling entertainment and technology company, as chairman Howard Stringer prepares to hand over his CEO duties to top lieutenant Kazuo Hirai next month.

A spokeswoman for Sony declined to comment.

Lynton's promotion could come as early as next week, according to the Financial Times, which first reported Lynton's new role and responsibilities. 

Also read: Sony Reports Another Loss for Q3 — Downgrades Annual Forecast

Lynton would now oversee all of the company's domestic entertainment operations, giving him control over the Sony's music division in addition to its film and television shops. 

Stringer will step down from the day-to-day management, as the Japanese company struggles to regain its financial footing and former dominance in the consumer electronics field. 

Also read: Sony Names Kazuo Hirai New CEO

Last quarter, Sony reported a $2.1 billion loss for its third fiscal quarter ended Dec. 31 on a 17.4 percent drop in sales to $23.4 billion. Sony also projected a deeper loss for the fiscal year, increasing its estimates to a $2.9 billion shortfall — more than double the $1.18 billion forecast in November.

One of the few bright lights has been Sony's film division, which under Lynton has fielded a string of hits like "The Smurfs," and has a slate of tentpole films such as "The Amazing Spider-Man" and "Men in Black 3" due out next summer. 

Lynton is currently co-chairman of Sony Pictures Entertainment. He will remain in that post and in Los Angeles, with Sony Pictures Entertainment Co-Chair Amy Pascal reporting to him.