news\ Jan 18, 2013 at 11:00 am

Sony to sell U.S. headquarters to Chetrit Group for $1.1 billion

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In an effort to generate cash after years of losses, Sony has decided to sell its 37-story New York headquarters -- the long-time home for Sony's U.S. division -- to investors led by the Chetrit Group for $1.1 billion.

When it's all said and done, and all debts related to the building and transaction costs are paid, Sony expects the sale to generate about $770 million. The company and other units of the Japanese parent will still remain in the building, located at 550 Madison Ave., for up to three years. 

Sony is hoping to end four straight years of losses by selling certain assets and cutting jobs. The company has predicted a 20 billion-yen profit for the year ending March 31.

“It makes sense for Sony, as it’s no longer a cash-rich company,” said Keita Wakabayashi, an analyst at Mito Securities Co. in Tokyo. “What matters is whether the company can use these proceeds to develop more attractive products.”

[Bloomberg]

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