Business
Sony Cyberattack May Be Costliest Ever

This photo provided by Columbia Pictures – Sony shows, Randall Park, center, as North Korean leader Kim Jong Un in Columbia Pictures’ “The Interview.” North Korea has been linked to the unprecedented act of cyberwarfare against Sony Pictures that exposed tens of thousands of sensitive documents and escalated to threats of terrorist attacks that ultimately drove the studio to cancel all release plans for “The Interview.” (AP Photo/Columbia Pictures – Sony, Ed Araquel)
BERNARD CONDON, Associated Press
ERIC TUCKER, Associated Press
MAE ANDERSON, Associated Press
NEW YORK (AP) — The unprecedented hack of Sony Pictures which a U.S. official says is linked to North Korea may be the most damaging cyberattack ever inflicted on an American business.
The fallout from the hack that exposed a trove of sensitive documents, and this week escalated to threats of terrorism, forced Sony to cancel release of the North Korean spoof movie “The Interview.” The studio’s reputation is in tatters as embarrassing revelations spill from tens of thousands of leaked emails and other company materials.
Federal investigators believe there is a connection between the Sony hack and the isolated communist nation, according to an official who spoke on condition of anonymity. The official was not authorized to openly discuss an ongoing criminal case.
North Korea has denounced the “The Interview” but earlier this month said the hack might have been carried out by sympathizers. The movie features a pair of journalists played by James Franco and Seth Rogen who are asked by the CIA to assassinate North Korea’s leader Kim Jong Un.
The attack is possibly the costliest ever for a U.S. company, said Avivah Litan, a cybersecurity analyst at research firm Gartner. “This attack went to the heart and core of Sony’s business and succeeded,” she said. “We haven’t seen any attack like this in the annals of U.S. breach history.”
A besieged Sony on Wednesday cancelled the Christmas Day release of the film, citing threats of violence by the hackers and decisions by the largest multiplex chains in North America to pull screenings. The hackers, who call themselves Guardians of Peace, had made threats of violence reminiscent of September 11th, 2001 if movie theatres showed the film.
Sony later said it has “no further release plans for the film.”
“We are deeply saddened at this brazen effort to suppress the distribution of a movie,” Sony Pictures said in a statement.
National Security Council spokeswoman Bernadette Meehan said the U.S. government had no involvement in Sony’s decision. She said artists and entertainers have the right to produce and distribute whatever content they want in the U.S.
John McCain, a Republican senator from Arizona, called Sony’s decision to cancel the movie a “troubling precedent that will only empower and embolden bad actors to use cyber as an offensive weapon even more aggressively in the future.”
How much the cyberattack will ultimately cost Sony is unclear. Sony faces trouble on several fronts after nearly four weeks since the hackers first crippled its computer systems and started dumping thousands of emails and private documents online.
In addition to vanishing box-office revenue from “The Interview,” leaked documents could muck up production schedules, experts say. There will be the cost of defending the studio against lawsuits by ex-employees angry over leaked Social Security numbers and other personal information. And then there are actors who might decide to work at another studio.
Beyond the financial blow, some say the attack and Sony’s capitulation has raised troubling questions about self-censorship and whether other studios and U.S. companies are now also vulnerable.
“Artistic freedom is at risk,” said Efraim Levy, a senior financial analyst at research firm S&P Capital IQ. “Are we not going to put out movies that offend some constituencies?”
A breakdown of areas where Sony may suffer damage:
BOX OFFICE LOSSES
With a modest budget of about $40 million, “The Interview” had been predicted to gross around $30 million in its opening weekend. Doug Stone, president of film industry newsletter Box Office Analyst, forecast that Sony could have grossed $120 million in U.S. and foreign box office revenue from the film. It has already spent tens of millions on marketing.
But Stone said the losses represent a single movie flop, than a spreading corporate disaster. Revenue from Sony Corp.’s “pictures” business totaled 830 billion yen ($7 billion) last fiscal year.
“Disney wrote down $200 million on the “Lone Ranger” and didn’t bat an eye,” he said of the rival studio. “So while it would be a significant hit, it certainly wouldn’t cause a financial collapse.”
STIRRED OR SHAKEN?
A leaked script of the Sony’s upcoming James Bond film “Spectre” led to an online frenzy of articles warning readers of “major spoilers.”
Seth Shapiro, a professor at the University of Southern California’s School of Cinematic Arts, thinks the potential damage from a hit to the blockbuster franchise is big.
“How can they proceed if everyone in the audience has already read the script?” he said. “You basically need to start over and see how much you can salvage.”
Others disagreed, noting that people flooded to movies like “Titanic” though everyone knew the ending. And they question how many people would pore through details of the script anyway.
“Most people don’t read scripts,” said veteran publicist Howard Bragman. “The Bond movie is going to do just fine.”
FLEEING TALENT?
It’s not yet clear if the leaks of sensitive emails will cause agents and top actors to think twice about working with Sony.
In the short term, some think it may hurt, not only because of the insults directed at stars such as Angelina Jolie, but because the massive leak hurts prestige and indicates Sony is not being run as well as it should, said Shapiro.
“Is Sony going to be the place of first resort for Hollywood A-List? No. Not tomorrow.”
Others say business interests will trump ego.
“Studio people are always saying negative things about talent,” said Gene Del Vecchio, a marketing professor at University of Southern California’s Marshall School of Business. “Ultimately it’s about business,” he said. “That will outweigh the insults.”
But all bets are off if Sony decides to reshuffle the top executives at the studio. Some have speculated that co-chair Amy Pascal’s job might be in jeopardy due to the insensitive nature of some of her remarks in emails.
In an industry based on relationships, major changes at the top can affect projects for years, said Larry Gerbrandt, a principal at entertainment consulting firm Media Valuation Partners.
“If the fallout leads to large scale changes at the senior executive level it will have a ripple effect for several years since it brings to halt most movies currently under development.”
Projects have to be written off, replacement executives hired — who will have their own ideas of what movies should be made — and the costs could easily get into the hundreds of millions of dollars, he said.
LEGAL WOES
Earlier this week, four former employees sued Sony for not protecting their private information from hackers. The lawsuits seek class-action status on behalf of the nearly 50,000 Sony Pictures employees whose Social Security numbers and other private data was exposed.
Legal experts said the cases are likely just two of many that will be filed over the data breach. A review of 32,000 emails from the inbox of Sony Entertainment CEO Michael Lynton that were dumped by the hackers on Monday showed the studio suffered significant technology outages it blamed on software flaws and incompetent technical staffers. Hackers targeted executives to trick them into revealing their online credentials.
The files expose lax Internet security practices inside Sony such as pasting passwords into emails, using easy-to-guess passwords and failing to encrypt especially sensitive materials such as salary and revenue figures, strategic plans and medical information about some employees. Experts say such haphazard practices are common across corporate America.
Sony potentially faces tens of millions of dollars in damages from a class-action lawsuit, said Jonathan Handel, an entertainment law professor at the University of Southern California Gould School of Law.
“This doesn’t look good for Sony, which after all is a technology company,” Handel said.
___
Tucker and AP Writer Ted Bridis reported from Washington, D.C. Condon, Anderson and Film Writer Jake Coyle and Business Writer Joseph Pisani contributed from New York. AP Writer Anthony McCartney contributed from Los Angeles.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Black Press
Statement from the President of the National Association of Black Journalists on Press Ban
TEXAS METRO NEWS — The National Association of Black Journalists (NABJ) condemned President Donald Trump’s decision to deny access to MS NOW journalists and his threats against CNN and Politico due to unfavorable coverage. The NABJ stated that journalists hold power accountable for the American people, and government officials cannot grant or withhold access based on reporting they like or dislike.
NABJ condemns President Donald Trump’s decision to deny access to MS NOW journalists and his threat to exclude CNN and Politico because of coverage he dislikes. The role of journalists is to hold power accountable on behalf of the American people. Government officials cannot reward reporting they find favorable with access, or withhold access as punishment for journalists who have scrutinized or criticized them. This retaliation is a threat not only to the news organizations being targeted, but to every journalist working to report independently and without fear of government reprisal. The White House belongs to the American people, and they have a right to know what their government is doing. Journalists must be free to ask difficult questions and report the answers. A free and independent press is not a privilege granted at the discretion of any president. It is a cornerstone to a healthy and functioning democracy. The First Amendment can never be optional.
Based on reporting by Texas Metro News.
Black History
HBCU Leaders, Corporate Partners Convene in D.C. to Strengthen Support for Black Colleges’ Athletic Programs
COLUMBUS TIMES — HBCU athletic conference commissioners, university presidents, and corporate leaders gathered in Washington on Tuesday, September 15, for the Salute to HBCU Sports Leadership Reception. This invitation-only event, hosted at Gensler’s K Street office, aimed to deepen investment in historically Black colleges and universities.
Commissioners from HBCU athletic conferences joined university presidents and corporate leaders in Washington on Tuesday, Sept. 15, for the Salute to HBCU Sports Leadership Reception — an invitation-only gathering aimed at deepening investment in historically Black colleges and universities.
Hosted at Gensler’s K Street office, the evening brought together conference commissioners, campus presidents, and executives from sports, media and design organizations under the theme “Building Partnerships. Celebrating Excellence. Advancing HBCUs.” Gensler highlighted its partnership with Paxton Baker on the event in a post on Instagram, showcasing the room full of HBCU presidents and conference leaders.
Five Conferences, One Room
Commissioners from four NCAA conferences and one NAIA conference were on hand, representing institutions that compete across Division I, Division II and the NAIA:
Anthony Holloman — Southern Intercollegiate Athletic Conference Charles McClelland — Southwestern Athletic Conference Jacqie McWilliams Parker — Central Intercollegiate Athletic Association Sonja Stills — Mid-Eastern Athletic Conference Kiki Baker Barnes — HBCU Athletic Conference
Their presence linked leadership from across the HBCU athletics landscape with campus administrators and organizations working in event management, design and media.
Presidents and Black Press Leadership in the Room
Among the university presidents in attendance were Prairie View A&M’s Tomikia P. LeGrande and Bowie State’s Aminta H. Breaux.
LeGrande’s appearance came just days after the Thurgood Marshall College Fund named her the recipient of its Educational Leadership Award, as announced by Prairie View A&M. She was honored at TMCF’s 39th Anniversary Gala on Sept. 12 in Washington. LeGrande has served as Prairie View A&M’s ninth president since June 2023.
Breaux, who has led Bowie State since July 2017, previously chaired the CIAA’s board of directors, according to her university biography.
Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association, also attended — fitting, given the NNPA’s role as one of the reception’s presenting partners. Chavis and HBCU GO’s Lawrencia Moten conducted two 30-minute interview sessions with the conference commissioners, covering topics ranging from the NIL era to conference growth and the experience of leading HBCU athletics, according to HBCU GO President Curtis Symonds, who spoke with HBCU Legends about the sessions.
Corporate and Institutional Partners
Five organizations presented the reception together:
Gensler — the architecture and design firm that hosted the event Events DC — the District’s convention and sports authority USA Track & Field — the sport’s national governing body National Newspaper Publishers Association — representing Black newspaper publishers HBCU GO — the network dedicated to HBCU sports and culture
That mix of partners pointed to a range of possible collaborations ahead, from athletic facilities and event operations to sports programming and media coverage.
Building Beyond the Scoreboard
What stood out most was the mix of people in the room — conference commissioners setting strategy for their leagues, university presidents shaping institutional priorities, and corporate partners bringing resources and expertise from multiple industries.
With college athletics undergoing rapid change, particularly for HBCUs navigating the NIL era and shifting conference dynamics, the reception offered a venue for candid conversation and relationship-building. Its underlying purpose went beyond athletics: using sports as an entry point to broader opportunities in education, workforce development and economic growth for HBCUs.
Based on reporting by Columbus Times.
Black History
At CBCF Conference, a Panel Asks What Black Public Figures Owe the People Who Follow Them
COLUMBUS TIMES — The Congressional Black Caucus Foundation’s Annual Legislative Conference featured a panel titled “Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach.” Actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét, and rapper Yung Joc discussed how public figures can translate influence into real-world change.
WASHINGTON — Among the more than 100 policy forums and brain trusts at this year’s Congressional Black Caucus Foundation Annual Legislative Conference was a conversation about influence itself: who has it, and what they do with it.
"Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach" brought together actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét and rapper and radio host Yung Joc. The session looked at how entertainers, creators and elected officials can turn public attention into real-world change.
The panel took place at the 55th Annual Legislative Conference, a five-day event in Washington that began Wednesday. This year’s theme is "Rooted, Ready & Rising," and the conference coincides with the CBC Foundation’s 50th anniversary. CBCF President and CEO Nicole Austin-Hillery has said the gathering is meant to "combine celebration with purpose," while taking up issues including voting rights, economic opportunity, education, health disparities and criminal justice.
That mix of celebrity and policy is a long-running feature of the conference, which brings lawmakers, advocates, entrepreneurs, students and entertainers into the same rooms. The panel’s premise reflects a broader question as creators reach audiences that rival traditional media.
A career built on both stage and street
Sampson is a natural fit for that conversation. The Houston native is known for television and film work, including HBO’s Insecure, and for his activism off screen. He co-founded BLD PWR, a 501(c)(3) nonprofit that combines entertainment, education and activism.
The organization says its mission is to "reimagine and realize the liberated future we know our people deserve." It works to mobilize entertainment-industry figures and organize communities around racial, gender, immigration, economic and environmental justice, mental health and wellness, and opposition to state violence. BLD PWR emphasizes storytelling and community healing, and it centers the voices of Black, Indigenous and other marginalized communities.
What to watch
The conference runs through Sunday at the Walter E. Washington Convention Center. Details on sessions and registration are available through the CBC Foundation.
Based on reporting by Columbus Times.
Black Press
Newsom Signs Addictive Social Media Law to Protect Kids
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
Word Count: 391
Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.
AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.
The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.
“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.
AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.
Lowenthal said the new rules represent a shift toward greater accountability for technology companies.
“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.
The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.
Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.
Black Press
Newsom Signs Addictive Social Media Law to Protect Kids
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
Word Count: 391
Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.
AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.
The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.
“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.
AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.
Lowenthal said the new rules represent a shift toward greater accountability for technology companies.
“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.
The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.
Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.
Black Press
OP-ED: How Head Start Also Helps Parents
BLACKPRESSUSA NEWSWIRE — “I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”
Ron Herndon Head Start Parent Scholarship awardee Paris Hill, of Sunbelt Human Advancement Resources in Greenville, South Carolina, says that Head Start has been instrumental in reaching her dreams.
“Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better—not only as parents but for yourself.”
Hill embodies the spirit of NHSA’s Ron Herndon Scholarship, which celebrates a Head Start parent who goes above and beyond in their community.
During the pandemic, Hill participated in virtual classroom instruction with her children and engaged in parent virtual activities such as Parent Committee meetings and financial literacy classes. She recently contributed over 96 hours to her program.
“I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”
Hill enrolled in college and pursued a bachelor’s degree in applied sciences with a concentration in business management. She has met and exceeded her personal goal of becoming a nail technician and creating her own business.
The $2,500 parent scholarship supported her vision. “Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better — not only as parents but for yourself.”
She has an uncommon career goal — to become a mortician — and has already found part-time work. She has found it rewarding to assist families who were going through challenging times because of the death of a loved one.
“When I first applied for the parent scholarship program, I was excited and this was my time to show what I’m capable of. It fills my heart with joy knowing I had a team of teachers and directors pushing me to do better and acknowledging me as parents and not just as a mom.”
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