Sony Sells Its US Headquarters

Sony is selling its iconic Madison Avenue building its headquarters in the US, in order to raise operating income. The sale of the building, designed by Philip-Johnson in 1984, will be for just over $1 billion and will boost Sony’s figures by $685 million. It previously belonged to AT&T.

The 37 story building in New York will be sold to investors led by the Chetrit Group (who also own Willis Tower in Chicago) although Sony will be permitted to stay in the building for the next three years before having to find somewhere else.

– ARTICLE CONTINUES BELOW –
[drop2]Bloomberg says this is part of the cutting jobs and selling assets line of thinking that the company is in the middle of, after four straight years of financial losses.

After news of the sale got around overnight, Sony’s shares jumped 12 percent to 1,149 yen in Japan, which is the biggest leap since 2008.

“Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move,” Nicole Seligman, president of Sony Corp. of America, said in the statement.

“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.”

The building was bought by Sony for $250 million.

Source: Bloomberg.

– PAGE CONTINUES BELOW –

14 Comments

  1. There are some bargain buildings available in Harlem i hear

  2. Monetising assets when you have less than no money is the only way to go.

    The tough deal for Sony is that the corner is some way from being turned, first couple of years of a console hen don’t make money. TV business has gone to Korea, even Kaz said they have no manufacturing strategy for 4K OLED, you can be sure their rivals do.

    They’re under pressure to sell either their movie or music business although Kaz is firmly in favour of keeping them because they not only make money which is unusual for a Sony division but help drive adoption of other Sony products.

    The PS4 could be the turning point the company needs, although that could have been said about Vita & competition for home gaming is going to be even more fierce this time around.

    • I highly doubt they will sell either music or films, they actually make money from both of them, they the biggest label about with number 1 selling artist. Films are chart breaking some of them.

      They should just get rid of everything else apart from play station & cameras.

      • Which is why I said “because they not only make money which is unusual for a Sony division but help drive adoption of other Sony products.”

  3. A sad but smart move. I wonder if the PS4 will still be sold at a loss, or if they’ll sell it for a profit like Nintendo. I’m actually kinda hoping for the latter. They shouldn’t go half a decade selling a product at a loss again.

  4. Kaz is not messing around.

  5. Well as most people said, it has to be done. You are losing money, you need to sell assets to make it up. You can’t go on forever making a loss.

  6. As long as the new offices are practical for the workers, and it saves on running costs in the long run, this is a good move for Sony. “Iconic” corporate buildings don’t mean as much as they used to, and given they’ve still got three years before they have to move out means the transistion can be fairly smooth. Smart move on the whole, especially with the big boost in finances.

  7. Glad I went there when I did. Their PS Basement/Grotto was pretty awesome.
    Themed sections for their more publicised games.

  8. I just hope that SONY survive the onslaught of hate & negative gaming internet press that ‘WILL’ come from the internet when they show the PS4 soon :-/ Because even if it’s perfect the PS4, SONY will get bad press off gaming sites…YAWN…Zzzzzzzzzzzzzzz…i.e – ‘Same sh*t, different Gen’ then LoL:D

    • True, true. If everyone could comment on game sites with a mature attitude we’d all be laughing! ;-)

    • So the PS4 ‘WON’T’ be perfect?

  9. Just the operation cost from being in NYC should make Sony consider moving it’s headquarters to a “cheaper” city. IMO having a NYC headquarters is something you do when you have extra cash and want to brag about having a corporate headquarters in NYC. Its odd the stock price increased,I know it jumped because of the extra cash on hand, but that cash is going to be gone soon and Sony isn’t out of the water yet, they’re still very much in trouble, but now they have less assets. I’d expect the stock to drop again soon.

Comments are now closed for this post.