Reported by TechCrunch, Electronics Giant Sony appears to be looking everywhere for cash to maintain financial liquidity, even if means literally selling the roof over it’s head.
For sale is their NYC headquarters, proceeds of which expect to net just under USD 1M in cash after building-related debt and sale-related obligations.
Cash generated will be used to “undertake a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth.”
While it is somewhat sad seeing once mighty giant struggle to remain solvent, it is intriguing to hypothesize what may come next and what it may mean for the tiny Digital Signage Division locked within once-mighty Walkman Empire.
If restructuring of Kodak and other technology firms offers any indication, non-core divisions can likely expect finding themselves on the auction block when struggling parent companies look for cash to fund plans of renaissance.
The Digital Signage products (including ambitious and fun ZIRIS Video Wall Software) typically have been lumped into Sony’s Professional Products line, closely associated with the Broadcast and Imaging division. Contribution of the DS business to the giant’s bottom line is estimated to be negligible, with the term “Digital Signage” not even appearing in the 2012 annual report.
Considering that just weeks ago Harris sold-off their Broadcast Division to The Gores Group, will Sony Professional Products or Digital Signage face a similar fate? Will the Digital Signage software group even make the cut at all or be folded to reduce costs?
A year ago 2012 was prophesied to be the year of mergers and acquisitions in the Digital Signage Industry – I think much more is to come in 2013.
January 18th, 2013 at 18:16 @803
Not to split hairs but, Sony is poised to net a gain of $685M on the sale of its NYC headquarters at a price tag of $1.1B. That is why the stock jumped today. Don’t get me wrong – the ship is still sinking with debt currently rated by Fitch at junk bond status. Sony’s DS customers should be actively looking to transition their business to more solvent firms. The smoke and mirrors have been exposed.