One major problem that has been facing Sony for awhile now has been their gloomy financial situation; however, the PlayStation 4 developer has chosen to sell off a major asset in order to regain some of its previous financial stability.
According to a report from Bloomberg yesterday, Sony has agreed to sell its monstrous 37-story skyscraper, which is located in downtown Manhattan, for $1.1 billion.
Chetrit Group will be the investing firm that has purchased the office, and since the move has been made, Sony's stock has surged more now than it has in the previous four years.
Sony believes the major sale could result in a net cash amount of $770 million after repaying debt tied to the building and other transaction costs.
Sony's recent financial struggles can be attributed to the falling demand for TVs, competition from Samsung, and the yen growing stronger. The recent turmoil at Sony has also resulted in various firings that have taken place.
Sony currently is predicting a $223 million profit for the fiscal year ending this coming March 31, which is following an unprecedented $5 billion loss just a year ago. The company said they have chosen to reevaluate their forecast so that it reflects the transaction mentioned above.
Mito Securities Co. analyst Keita Wakabayashi said this move from Sony made sense since they are no longer the type of cash-flowing company they use to be.
"It makes sense for Sony, as it’s no longer a cash-rich company. What matters is whether the company can use these proceeds to develop more attractive products," Wakabayashi said.