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Sony sells U.S headquarters



Sony has sold its U.S headquarters, to a consortium led by The Chetrit Group for 1.1 billion dollars, according to a new report on Gi.biz.

The 37-story building at 550 Madison Avenue has about 825,000 square-feet of office space and a 30,000 square-foot annex. The deal is scheduled to complete in March this year and will net Sony around 770 million dollars in cash, boosting its operating income by 685 million dollars.

"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."

Sony will be able to stay in the current building for up to three years until it finds a new headquarters.

This is certainly money that Sony could do with following years of disappointing sales in TV and mobile phones. The sale also comes ahead of the expect reveal of PlayStation Orbis (PS4).

Edited On 18 Jan, 2013

Comments
( 15 )
PrometheusFan's avatar
PrometheusFan 4 years ago
A billion bucks? Ha... they only paid like a quarter of that for the building like a decade ago. Guess they know how to make money when they really have to after all... just a shame for them they aren't in the real estate biz.
HappyNoodleBoy's avatar
well, they've lost a lot of money since the building purchase by other means.
HappyNoodleBoy 4 years ago
Tw33ks's avatar
Tw33ks 4 years ago
Here's hoping they can keep on to that money and are being sensible with Playstation Orbis. They can't afford another console that loses them $2-3 billion a year like Playstation 3 did.
PrometheusFan's avatar
Considering the PS4 is the first Playstation since the first not built around expensive proprietary tech, it seems they agree with you.
PrometheusFan 4 years ago
Beazi's avatar
Beazi 4 years ago
This could be for PS4 production costs. Brave move by Sony if so, as we dont know much about Next Gen as yet
PrometheusFan's avatar
I'd be very surprised if this benefits SCE in any way. More likely it'll be plowed straight into propping up the main electronics division of Sony... even though SCE has been carrying them for a while now.
PrometheusFan 4 years ago
iMerle iDixon's avatar
The little I think I know makes me want to cry, the rumor of blocked used games... how will I get rid of my games now when I'm done?
iMerle iDixon 4 years ago
Silly Billy's avatar
Renting will be out too, the best option will be just to buy another console.
Silly Billy 4 years ago
Beazi's avatar
I think if they dont allow rentals or Pre-Owned games... I will go to Microsoft (unless they do the same, in which case I hope Shopto stock PS3 games still)
Beazi 4 years ago
Robichoico's avatar
Robichoico 4 years ago
Saw this on Sky News. Apparently there's quite a few job cuts coming off the back of this too.
Dead's avatar
Dead 4 years ago
Sounds like Sony are in trouble if they have to sell off property and cut jobs.
HappyNoodleBoy's avatar
If you're referring to the jobs at this particular HQ location they're still there, for another 3 years if that main article is anything to go by
HappyNoodleBoy 4 years ago
Dead's avatar
Must have been overshadowed by cash reserves dwindled and stock price plummeted ;)
Dead 4 years ago
Beazi's avatar
Beazi 4 years ago
In a way, if they are looking to lease the offices to another business and move some people across though, this could be a way of funding there new project. For example, if they need £50Million to fund the PS4 project, they could lease the offices to a big company say for example Bank of New York, for £100 Million. They create the PS4 on budget, then are £50Million up so they can keep production costs low meaning low cost of console. They sell loads, and then take the offices back at the end of the lease. It could work that way. Of course the loser would be anyone working for Sony in that office, but the consumer can profit from a deal like that... HOWEVER - this is Sony we are talking about
Anonymous user's avatar
Brett 4 years ago
then nintendo opens there own making a regie 2.0

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