Sony Acquires Sony Ericsson for 1.05 Billion Euros

Yesterday, Sony announced that it will acquire Ericsson's 50% share of Sony Ericsson for 1.05 billion euros, making the handset maker a wholly owned subsidiary of Sony. This also ended the entire decade of cooperation between Sony and Ericsson in the mobile phone business. Ericsson, president and CEO of Ericsson, said that in the future, the company will focus on providing access to all devices. Sony CEO Stringer said that the "Sony Ericsson" brand will not change in the short term, but will be adjusted in the future.

The parties to the transaction stated that the deal will provide Sony with an opportunity to quickly integrate smartphones into its broad line of Internet consumer electronics products, including tablets, smartphones and PCs. At the same time, the transaction will also provide Sony with a wide range of intellectual property cross-licensing agreements covering all of its products and services, as well as five key family patents related to mobile phone technology. The agreement also requires the approval of the regulatory agencies and the decision-making bodies of both companies. It is expected that the transaction will be completed in January 2012.

Sony Ericsson is a new terminal company established by Sony and Ericsson’s consolidated handset business unit in October 2001. Both companies hold 50% of the shares. Although in the 10 years since its founding, Sony Ericsson has launched a very representative product line of Walkman, Cyber-shot, etc., but its overall performance is not ideal, long-term non-profit status.

The industry watcher Xiang Ligang believes that Sony and Ericsson each have a 50% shareholding structure, which makes Sony Ericsson has been plagued by internal friction. The constant development of exchange ideas has also made this company have not achieved much in the past decade. success. The Sony Uni-Equity stake should be a good thing for the terminal company. According to Fu Liang, a communications specialist, Ericsson transferred its shares in Sony Ericsson to Sony while its competitor Huawei made significant inroads into mobile terminals and Internet content services, focusing more of its efforts on the outsourcing of carrier communications services. on.