Sony Selling its New York Headquarters for $1.1 Billion


Sony is one of the prominent names in the electronics industry. Its products range from televisions to smartphones/tablets, so the company is pretty versatile when it comes to its products. However, it has not been having a great run in the industry with projections of losses upwards of $200 million which is a big figure for any company. And to even out most of those losses, the company has decided to sell its New York headquarters located in Madison Avenue. There’s no info on the buyer of the premises, but it has apparently been sold for about $1.1 billion. This is a huge step for the company and is highly indicative of the dark times it is having. With unflattering smartphones like the Xperia S and the Xperia ion last year, the company hardly made an impact in the market. The company’s main focus remains to be the smartphone industry, which is highly profitable if the luck is in favor.

This deal is believed to be completed by March of this year, but Sony will still occupy most of the premises for the next three years as a tenant. So it’s not completely shutting down its operations in the building. According to Sony’s estimates, after calculating the expenditure and other dues, approximately $638 million will be left over with the company. This amount will be considered as operating income. The move comes just in time for the end of the fiscal year where investors will have plenty of tough questions to ask Sony. The sale of the HQ will be welcomed by the investors as Sony will not have to record losses. However, new investors will be wary of Sony and its past. The company’s reins were handed over to a new management team last year, which has vowed to make the company profitable again. The sale of the NY headquarters should only mark the beginning of several cost cutting measures over the course of the year.

The Japanese manufacturer is currently prepping the launch of the much anticipated Xperia Z in global markets. The smartphone has been touted as one of the best smartphones of 2013, however it’s still early days in 2013 and we’ll inevitably see more smartphones coming in the next few months. Sony apparently will focus more on high end smartphones, as the mid ranged and low end segment haven’t been very fruitful for the company. 2013 could possibly be a very crucial year for the likes of Sony and HTC which rely heavily on the smartphone business, even more so with HTC. But we can be sure that these companies will not go down without a fight. Expect 2013 to be the year of technological marvels, especially in the field of display panels.

Source: Sony (PDF)
Via: GSM Arena

Image Courtesy: The Times

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