"Given the opportunities and challenges in the current economic landscape and property, the sale of 550 Madison is now a fast-moving and strategic logic," Sony Corporation of America President Nicole Seligman said in the statement, according to Bloomberg.
The sale of assets from Sony is a longtime to come. The company has struggled in recent years with increased competition and sluggish television sales. In addition to getting rid of most of its assets, Sony is cutting 10,000 jobs. The company would also seek to sell its building in Tokyo for between $ 1 billion and $ 1.5 billion.
After paying back the debt associated with its Madison Avenue building, Sony plans to keep about $ 770 million resulting from the sale. "Sony has undertaken a series of initiatives to strengthen its capital base and business competitiveness and future growth," the company said in a statement. "At the same time, Sony is to balance the inflow and outflow of cash while working to improve its cash position by carefully selecting investments, the sale of assets and strengthen the control of working capital such as inventories. This sale is made within the framework of these initiatives. "
While Sony sells 550 Madison, several of his companies - including Sony Music Entertainment, Sony / ATV Music Publishing, Sony Pictures Entertainment, and others - will remain in the building for the next two years.
The agreement between Sony and the Chetrit Group should be finalized in March.
