Sony to buy Ericsson out of JV
Sony to pay $1.48bn to buy Ericsson out of mobile phone joint venture
Sony is to buy Ericsson out of their Sony Ericsson mobile phone business for euros 1.05bn ($1.48bn).
The pair have decided to end their ten year joint venture, as the synergies for Ericsson, as a supplier of telecoms and technology solutions, have decreased.
Sony will take on Ericsson’s 50% of the business, with Sony Eriscsson becoming a wholly-owned subsidiary of Sony.
The move will allow Sony to integrate smartphones and smartphone technology into its wider portfolio of consumer electronics, including televisions, tablets and PCs.
Sony will also receive a broad IP cross-licensing agreement and ownership of five essential patent families.
Sir Howard Stringer, Sony’s chairman, CEO and president commented: “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. 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,” Stringer said.
The two companies have said that they will continue to work together, through a newly formed initiative that will focus on wireless connectivity across multiple platforms.
Hans Vestberg, president and CEO of Ericsson said: “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. We will now enhance our focus on enabling connectivity for all devices, using our R&D and industry leading patent portfolio to realize a truly connected world.”