October 27, 2011
Sony buys out Ericsson's stake in Sony Ericsson
Sony Corporation now fully owns Sony Ericsson Mobile Communications, which used to be a joint venture established back in October 1, 2011 between the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson.
Sony Ericsson’s global management is based in Hammersmith, London, and it has research and development teams in Lund, Tokyo, Mexico City, Beijing, and Redwood Shores in the US. By 2009, it was the fourth-largest mobile phone manufacturer in the world after Nokia, Samsung and LG. The sales of products largely increased due to the launch of the adaptation of Sony's popular Walkman and Cyber-shot series. In 2010, its market share had fallen to sixth place behind Research In Motion and Apple.
Ericsson has offloaded its Sony Ericsson stake to Sony, for an estimated Euro 1.05 billion in cash payment. This transaction is also valued at USD 1.47 billion at current market prices.
By acquiring all of Sony Ericsson, Sony is now fully in control of its “four-screen strategy” – television, laptops, tablets and mobile phones. With it subsidiary content providers through PlayStation Network, Sony Entertainment and even Sony Pictures in the movie industry, Sony is set to establish a closed entertainment service to its clients and customers. This announcement also comes after recent news of US internet companies like Google, Netflix and even Apple expanding on their video streaming services by entering new frontiers in Europe.
Updated: October 27, 2011 1:51 PM