The often prophesied move is now a reality. Sony and Ericsson have announced to break the decade-old partnership to make phones and move forward on their own. Sony will buy Ericsson’s 50 percent stake in the joint venture and make Sony’s wholly-owned subsidiary. In return, Ericsson will be compensated with a cash consideration of 1.05 billion euros.
Sir Howard Stringer nicely sums up why this decision will help both the companies.
“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.”
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