According to a Bloomberg report yesterday, Sony will be selling its New York-based headquarters to Cherit Group for $1.1 billion. After the electronics company has paid off its debts owed for the Madison Avenue building, Sony is expecting to receive a net cash proceeds of about $770 million. While many will unfortunately lose their jobs at that office, Sony will still be allowed to continue operations from the building for up to three years.
Keita Wakabayashi, analyst at Tokyo's Mito Securities Co. Tokyo., has stated that Sony is "no longer a cash-rich company" after four straight years of losses on television-selling front. Shares have risen in the last four years, however, by 12%, thanks to the gaming sectors of Sony, but competition from Samsung for TVs has been far too steep.
Sony is looking to relocate their HQ in the same area. "Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move," stated Nicole Seligman, President of Sony Corporation of America. "Regarding our new headquarters, we continue to look at a number of spaces in Manhattan but have not yet made a decision about where to lease."