Sony to finally take over Sony Ericsson
Well this news is not really surprising. After 10 years, Sony finally decided to take control of Sony Ericsson’s mobile handset business thereby unifying all their consumer electronics product. They already created the Tablet S and the integration of the smartphone venture from Sony Ericsson will offer more opportunities for them and the consumers.
Ericsson confirmed today that Sony bought out their 50% ownership for a whopping €1.05 billion. The transaction also provides Sony with a broad intellectual property (IP) cross-licensing agreement covering all products and services of Sony as well as ownership of five essential patent families relating to wireless handset technology.
“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.
Meanwhile, Ericsson will continue to focus its efforts in telecommunication and network technology as they’ve been doing ever since. You won’t see the brand at the forefront of consumer products but they will be powered by Ericsson in some way or another.
“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” said Hans Vestberg, President and CEO of Ericsson.
The transaction, which has been approved by appropriate decision-making bodies of both companies, is expected to close in January 2012.