for 1.05 billion Euros
Joint Swedish-Japanese mobile phone manufacturing venture Sony Ericsson has announced that is to become a wholly-owned subsidiary of Sony, whilst being integrated into Sony’s platform of consumer electronics products at the same time.
The Sony Corporation and Telefonaktiebolaget LM Ericsson made public that Sony will acquire Ericsson’s 50-percent stake in Sony Ericsson Mobile Communications AB – making the mobile handset business a wholly-owned subsidiary of Sony.
As part of the transaction, Ericsson will receive a cash consideration of EUR 1.05 billion. The deal gives Sony an opportunity to integrate the smartphones into its broad array of network-connected consumer electronics devices – including tablets, televisions and personal computers – for the benefit of consumers and the growth of its business.
This 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.
“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. 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.
Sir Howard Stringer, Sony’s Chairman, Chief Executive Officer and President has stated – “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. 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,”