Sony Ericsson mobile phone joint venture ends, Sony to buy Ericsson for $1.47 billion cash

By on Oct 27, 2011 in Business, Technology, United States, World Comments

Sony will be buying Ericsson for about $1.47 billion cash and will acquire Ericsson‘s 50 percent stake, ending the 10-year Sony Ericsson mobile phone joint venture.



Sony Ericsson logo
Image Credit: SonyEricsson.com

According to a press release posted at SonyEricsson.com on Thursday, October 27, 2011, Sony Corporation will buy Ericsson for €1.05 billion (nearly $1.47 billion), making the mobile handset business a wholly-owned subsidiary of Sony.

“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.” Howard Stringer, Sony‘s Chairman, Chief Executive Officer and President, was quoted on the report.

“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.” Stringer added.

“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.” Ericsson President and CEO Hans Vestberg said on the press release.

“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.” Vestberg added, ending the Sony Ericsson joint venture which started on October 1, 2011.

The deal, which was said to have been already approved by both companies, is being expected to close in January 2012, with Sony to be obtaining full control over Sony Ericsson starting next year.



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