Sony has agreed to sell its US headquarters for $1.1 billion, according to Bloomberg. After repaying off the debts tied to the Madison Ave. building Sony will receive about $770 million. The company will remain in the building for up to three years. The deal is expected to be finalized in March.
Sony has been downsizing over the last year to counteract four straight years of losses. After the sale of the building broke Sony shares increased by 12 percent. This is the biggest gain since October 14, 2008.
"Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move," Nicole Seligman, president of Sony Corp. of America, said in the statement. "Regarding our new headquarters, we continue to look at a number of spaces in Manhattan but have not yet made a decision about where to lease."