Sony to sell off its US headquarters for $1.1 billion

Sony to sell off its US headquarters for $1.1 billion

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Electronics manufacturing giant Sony announced on January 17, 2013, that it is selling its US head quarters building. The building is located on Madison avenue in New York City and will be sold to a real estate consortium, which is headed by the Chetrit Group. The 37-storey building has been valued at $1.1 billion.

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Nicole Seligman, the President of Sony Corporation of America said “Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move”. The sales of the company’s assets has been due for a long while, as it struggles to balance its financial situation.

The electronics maker has been struggling over the past few years due to the increase in competition and poor TV sales. Apart from selling its assets, the company is also cutting jobs and is looking to sell its Tokyo building for between $1 billion and 1.5 billion.

Sony also plans to keep around $770 million from this sale after it gives back its debt, related to its Madison Avenue building. The company said in a statement that it is taking various initiatives to strengthen its financial foundation as well as business competitiveness and is looking forward to its growth in the future.