Sony Sells Tokyo Building for $1.2 Billion - News
by William D'Angelo , posted on 01 March 2013 / 6,661 Views
Sony has announced that it has sold its Sony City Osaki office building for 111.1 billion yen ($1.2 billion). The building was sold to Nippon Building Fund Inc. and a Japanese institutional investor. However Sony will remain in the building for four more years under a new lease agreement.
After the transaction is complete Sony will have a net cash of 110 billion yen ($1.19 billion). Sony is expected to gain about 41 billion yen ($442.4 million) from the sale and will count toward the operating income for Sony's fourth quarter which ends March 31, 2013.
"Sony has identified certain assets for possible sale as part of an initiative to transform its business portfolio and reorganize its assets," said Sony in the Statement. "This sale was conducted as a part of that initiative. While this sale was anticipated and the potential gain on the sale was taken into account at the time of the forecast, Sony is currently reevaluating the aggregate impact of this sale and other factors on the forecast."
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This certaily is a bad sign...
For SONY yes for the Playsation brand NO.
SONY are reducing the costs and are focusing on cutting all losses and are for the next years going to focus more on some categories etc.
The Playstation brand are SONY's flagship and will continue on STRONG but they will slow dwn with tv development etc.
What? No it's not. Have you not been following Sonys dire losses for the last few years? They have needed to do this for a very long time.
Wow thats alot of money :O
And even this 1.2 billion dollar are only a drop in the bucket. Sonys debts are catastrophic high.
"And even this 1.2 billion dollar are only a drop in the bucket. Sonys debts are catastrophic high." It's astonishing how little some people know about business. Businesses are founded and function on the debt system. Why do you think banks are such a critical part of the economy in the United States and why the Federal Government modifies the Federal Funds Rate to cut off the ability of some businesses to borrow money. Sony does have a lot of current liabilities but the company also has a lot of Long term assets that can be sold to generate cash to help pay some of these debts. What Sony is doing is managing its assets and doing some restructuring. Don't make it out like its the end of the world. This ship happens every day 100 times all over the world in many companies. Completely normal activity. - See more at: http://www.vgchartz.com/article/250786/sony-sells-tokyo-building-for-12-billion/#comments
First New York, now Tokyo....this is just a bad sign in my opinion. NO SONY NO!!!! I WANT YOU IN THE CONSOLE WARS!
They are taking BIG STEPS to make sure they turn the tide with the Playstation brand. PS3 and PS4 will make sure SONY gets back on track.
PSVita aren't performing well yet but will probably start to pick up pace as soon as more rpg's and Monster Hunter comes out.
@ z101 "And even this 1.2 billion dollar are only a drop in the bucket. Sonys debts are catastrophic high." It's astonishing how little some people know about business. Businesses are founded and function on the debt system. Why do you think banks are such a critical part of the economy in the United States and why the Federal Government modifies the Federal Funds Rate to cut off the ability of some businesses to borrow money.
Sony does have a lot of current liabilities but the company also has a lot of Long term assets that can be sold to generate cash to help pay some of these debts. What Sony is doing is managing its assets and doing some restructuring. Don't make it out like its the end of the world. This ship happens every day 100 times all over the world in many companies. Completely normal activity.
Your comparing apples and oranges. This isnt some mega bank with its tentacles wrapped the federal government, its a once great multimedia company that isnt to big to fail and won't crash the economy of Japan. Its even for certain if banks died the U.S. would completely crash, its a lot propaganda from wall street to get tax payer money without having to pay it back. I suggest you do some research before you criticize others.
What he said. If you were as business save as you pretend to be then there would be no defence for Sony. They're selling this building to help pay off debts owed. It is a common thing like you said, common for a business in trouble. It's comparable to a human cutting off their hand for food. A long term loss for a short term gain.
Wow, i knew Sony was in trouble, but this sounds worse than i thought
Personally i'm not a fan of deals where you sell the building but still stay inside it. They rarely seem to work out long term, since well your selling it to someone who wants a profit.
I mean... would you sell your home to someone then rent that same home?
Crazy that a set of buildings can be worth that much. I'd sell too, if I was Sony.
I blame all the graphics-intensive gamers. Your insatiable desires are ruining gaming companies! ;)
Sony is not a "gaming" company.
Because they don't also make TV's, cameras, phones, laptops.....oh wait
