Sony resorts to selling NYC office building instead of electronics to make money

[pRICE cUBE]

http://www.thestreet.com/story/11816996/...en=GOOGLEN

Sony has agreed to sell its U.S. headquarters to a consortium of buyers for € 685 million ($1.1 billion). The buyers are led by The Chetrit Group - a Manhattan-based owner of commercial properties in New York and other major U.S. markets.

The idea's simple. Sony sells the building for a nice profit then rents back the office space. It's similar to what Nokia (NOK_) recently did with its headquarters building in Finland. Sony expects to pull $770 million in net cash out of the deal, of which $685 million, will go down as operating income which should help them attain a profitable third quarter, later this year.

[cbelt3]

In the midwest 'flyover country', that's referred to as 'Eating your seed corn'.
In business, it's a sign of major weakness.

[macphanatic]

And it will make their 4th quarter look really, really bad. I wonder what Sony will sell next to bolster their profit.

[deckeda]

macphanatic wrote:
... I wonder what Sony will sell next to bolster their profit.

Another thing they could sell back to New Yorkers would be Columbia Records.

[Speedy]

Pan Am.

[N-OS X-tasy!]

deckeda wrote:
[quote=macphanatic]
... I wonder what Sony will sell next to bolster their profit.

Another thing they could sell back to New Yorkers would be Columbia Records.
That would be nice.

[space-time]

look how much they discount the products