Sony to buy Sony Ericsson, turn into 100 percent subsidiary

The Japanese electronics maker says it will pay Ericsson €1.05 billion for its share of the business and related patents.

Sony said Thursday it will acquire Ericsson's 50 percent share in their Sony Ericsson mobile phone joint venture, turning the company into a subsidiary in January 2012.

The Tokyo-based electronics maker said in a press release it will pay Ericsson €1.05 billion (US$1.5 billion) in the deal, which includes several sets of related patents and a cross-licensing agreement for intellectual property.

Sony has until now launched its smartphones through the joint venture, which began operations in 1981. The deal will allow it to integrate phones into its overall product lineup, as rivals such as Apple and Samsung do now, and better leverage its broad music and movie holdings.

"During the past ten years the mobile market has shifted focus from simple mobile phones to rich smartphones that include access to internet services and content. The transaction is a logical strategic step that takes into account the nature of this evolution and its impact on the marketplace," Sony said in its release.

The tie-up helped turn around the ailing phone businesses of both companies, by leveraging well-known Sony brands into phone models such as the Walkman and Cyber-shot series.

The joint company has recently released its advanced phones under the Xperia brand, and Sony has expanded its streaming networks and game download services to work on the Android-driven devices.

Sony said the deal will allow it to include phones into its "four-screen strategy," which aims to offer content and interconnect smartphones, laptops, tablets, and televisions.

Tags Ericssonbusiness issuesconsumer electronicsSony EricssonsonyMergers and acquisitions

Recommended

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?