Japanese electronics behemoth Sony has agreed to sell its New York City-based U.S. headquarters for $1.1 billion to a group of investors led by the Chetrit Group, Bloomberg reports.
Sony has struggled in recent years to make a dent in the electronics world like it used to, losing much ground to companies such as Samsung, Apple, and LG. Sony has lost ground in televisions and has yet to introduce its gaming console to succeed the PlayStation 3. (That could be announced as early as May.) On top of this, Sony has accrued losses the past four years and plans to slowly cut 10,000 jobs, so selling some assets seems like a decent idea.
“It makes sense for Sony, as it’s no longer a cash-rich company,” Keita Wakabayashi, an analyst at Mito Securities in Tokyo, told Bloomberg. “What matters is whether the company can use these proceeds to develop more attractive products.”
Sony expects the sale of the building to generate about $770 million, after transaction fees. The company, including units like Sony Music Entertainment, plans to stay in the building for up to three years after the sale is complete.
Sony building NYC via Christian Steen/Flickr