Sony Corporation, which is commonly known as Sony, is a Japanese origin multinational corporation. It is headquartered in Japan, Tokyo, Konan and Minato. Sony has diversified its business into number of sectors such as electronics, entertainment and financial services. And it has been ranked as 87th on the 2012 list of Fortune Global 500. However, now Sony has sold its headquarters in central Tokyo, Sony City Osaki, due to big fluctuations in consumer electronics business. For a sum of 111.1 billion yen, this makes $1.2 billion USD, to strengthen the corporate structure and now this is live on the official website.
Although, Sony City Osaki is no longer the property of Sony Corporation yet they are going to be inhabitant of it as per their lease policy for the period of five years. According to the press release, the sale price 111.1 billion yen, after deducting expenses, Sony has received net cash of 110 billion yen. This headquarter, Sony City Osaki, was considered to be second large official building of Sony after selling its New York City headquarters, which had worth of $1.1 billion.
Unfortunately or fortunately, Sony had to trade off. In the struggle to remain profitable, CEO Kuzuo Hirai made this decision and to be more focused on making of games, mobiles and digital imaging. So, what do you think out of it, was it really a catch for Sony to sell the assets worth 111.1 billion yen? Share your views in the comment section below.
Take a look, from Sony’s website:-
Reasons for this sale
Sony is transforming its business portfolio and reorganizing its assets in an effort to strengthen its corporate structure. This sale was conducted as a part of this reorganization.
Summary of assets to be sold
Assets / Location
Expected Gain on Sale
Sony City Osaki
(Shinagawa-ku, Tokyo, Japan）
111.1 billion yen Approximately
44 billion yen
41 billion yen
In use as an office building of Sony