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.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesEricssonSony Ericssonconsumer electronicssonyMergers and acquisitions

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

Jay Alabaster

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?