Sony Acquires Ericsson’s 50% Stake in Sony Ericsson for €1.05 Billion

The Japanese electronic joint, Sony has confirmed today that it is going to buy out 50% stake of Ericsson in the Sony Ericsson joint venture of mobile phone for €1.05 billion.

The deal will put Sony in control of 50% stake of Ericsson in joint venture. Besides 50% stake of Ericsson, Sony will also buy out five wireless technology ‘patent families’. The acquisition will also bring two companies under cross licensing deal for their intellectual property.

In order to finalize the acquisition process, Sony will pay a handsome amount of €1.05 billion in cash to Ericsson, which means that at current market prices the deal values at $1.47 billion.

Sir Howard Stringer, CEO of Sony while talking about the deal 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.”

Further emphasizing the importance of this acquisition, Sony states that the acquisition of Ericsson will help Sony improve its “four-screen technology”, i.e. televisions, laptops, tablets and mobile phones. Sony says that our intentions are not only to offer devices in all four categories, but we will also offer content as well via our PlayStation Network and Sony Entertainment Network. Not to forget the fact that Sony has a vital presence in film industry as well through its Sony Pictures division.

It was back in 2001, when both Sony and Ericsson began their joint project. The idea was to revive their unprofitable mobile handset divisions. In recent few years, the company has dealt with Android devices including Xperia Arc and Xperia Play, both of which are well-known as ‘PlayStation Phone’.

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