Sony to Sell American HQ for $1.1B
In an effort to improve the company’s cash flow, Sony has worked out an agreement to sell its Madison Avenue building in New York for approximately $1.1 billion.
According to Polygon, Sony will continue to operate a few divisions (Sony Pictures and Sony Music Entertainment), out of the building for up to three more years. Even though Sony is selling the 37-story building, it will continue to lease the space for the next few years from the new buyer.
Sony is expected to make nearly $770 million after all the remainder of its debt and transaction fees are taken out. The move is part of Sony’s plan to, “strengthen its financial foundation and business competitiveness.” The company will adjust its financial forecast for the fiscal year, and expects the deal to bring in an operating-income gain of $685 million.