Sony buys out Ericsson in joint venture
Ericsson and Sony Corporation today announced that Sony will acquire Ericsson's 50 percent stake in Sony Ericsson Mobile Communications, making the mobile handset business a wholly-owned subsidiary of Sony.Updated: Oct 27, 2011 15:12 IST
Ericsson and Sony Corporation today announced that Sony will acquire Ericsson's 50 percent stake in Sony Ericsson Mobile Communications, making the mobile handset business a wholly-owned subsidiary of Sony.
Yes, it does sound confusing if you try to imagine it as "Sony bought Sony". The fact is Sony Ericsson is a separate company that turned into a joint venture when Sony essentially bought half of the company from Ericsson back in 2001.
Sony has agreed to buyout Ericsson's stake in Sony Ericsson for 1.05 billion euros in cash. "This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want. With a vibrant smartphone business and by gaining access to important strategic IP, notably a broad cross-license agreement, our four-screen strategy is in place. We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment. This includes Sony's own acclaimed network services, like the PlayStation Network and Sony Entertainment Network," said Sir Howard Stringer, Sony's Chairman, Chief Executive Officer and President. Mr Stringer also noted that the acquisition will afford Sony operational efficiencies in engineering, network development and marketing, among other areas. "We can help people enjoy all our content - from movies to music and games - through our many devices, in a way no one else can."
The transaction, which has been approved by appropriate decision-making bodies of both companies, is expected to close in January 2012, subject to customary closing conditions, including regulatory approvals.
First Published: Oct 27, 2011 13:58 IST