Its Sony And Not Sony Ericsson From Now

Sony has agreed to buy 50% of the firm for 1.1bn euros ($1.5bn; £964m), making the mobile handset business a wholly-owned subsidiary of Sony.Ericsson said that the "synergies" between telecoms equipment and mobile phones were decreasing.The transaction also includes a patent deal.

Ericsson said Sony Ericsson will become a wholly owned subsidiary of Sony and integrated into Sony's broad platform of network-connected consumer electronics products. Sony will get the five sets of patents that are essential to making the phones and a licensing agreement on any other intellectual property.Many observers expected this deal because Sony wanted to integrate its phone division with its mobile games machine and tablet computer units.

The 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,'' Stringer said. The deal will also provide Sony with an intellectual property cross-licensing agreement, covering all products and services of as well as ownership of five essential patent families relating to wireless handset technology.

Ericsson said the transaction gives Sony an opportunity to rapidly integrate smartphone into its portfolio of network-connected consumer electronics device, such as tablets, televisions and personal computers.Sony CEO, Sir Howard Stringer, said the acquisition will afford Sony operational efficiencies in engineering, network development and marketing.

Ericsson said the shift in the mobile market, from simple mobile phones to smartphones that include access to internet services and content, means the synergies for the company in having both a telecoms services portfolio and a handset operation have decreased.
The transaction is a logical strategic step that takes into account the nature of this evolution and its impact on the marketplace, the company said in a statement.


Ten years ago when we formed the joint venture, thereby combining Sony's consumer products knowledge with Ericsson's telecommunication technology expertise, it was a perfect match to drive the development of feature phones. Today we take an equally logical step as Sony acquires our stake in Sony Ericsson and makes it a part of its broad range of consumer devices,'' said Ericsson CEO Hans Vestberg. The deal will also provide Sony with an intellectual property cross-licensing agreement, covering all products and services of as well as ownership of five essential patent families relating to wireless handset technology.