27 October 2011 | Author: C. Tate
Sony has bought out its Swedish partner Ericsson for €1.05 billion (£920 million) as part of its effort to catch up with competitors like Samsung and Apple.
The buy-out marks the end of a ten-year cooperative venture between the two companies. The mobile phone operation will be absorbed into Sony's consumer division, which currently includes PCs, PlayStations, tablets and TVs.
According to Sony, the deal includes a "broad intellectual cross-licensing" agreement. This means Sony will be able to use intellectual property and five essential patent families for wireless mobile phone development that the companies developed together.
"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," Sony Chairman and Chief Executive Howard Stringer said..
"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 ... our four-screen strategy is in place."
Following the takeover, Sony will likely look to boost the popularity of its phones, as models such as the Xperia X10 have failed to make the same impact as its rivals' products.
Sony Ericsson published the figures of its third quarter financial update for 2011 earlier this month, showing that it had only managed to break even. Of the Android phone market, Sony Ericsson currently holds an 11 per cent share, representing 80 per cent of the company's third quarter sales.
Sony takes control of Ericsson
Sony has bought out its Swedish partner Ericsson for €1.05 billion (£920 million) as part of its effort to catch up with competitors like Samsung and Apple. The buy-out marks the end of a ten-year cooperative venture between the two companies. The mobile phone operation will be absorbed into Sony's consumer division, which currently includes PCs, PlayStations, tablets and TVs.
According to Sony, the deal includes a "broad intellectual cross-licensing" agreement. This means Sony will be able to use intellectual property and five essential patent families for wireless mobile phone development that the companies developed together.
"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," Sony Chairman and Chief Executive Howard Stringer said..
"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 ... our four-screen strategy is in place."
Following the takeover, Sony will likely look to boost the popularity of its phones, as models such as the Xperia X10 have failed to make the same impact as its rivals' products.
Sony Ericsson published the figures of its third quarter financial update for 2011 earlier this month, showing that it had only managed to break even. Of the Android phone market, Sony Ericsson currently holds an 11 per cent share, representing 80 per cent of the company's third quarter sales.
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