Sony Ericsson will become a wholly-owned subsidiary of Sony after Ericsson agreed to sell its stake in the joint venture for US$1.47 billion (€1.05 billion).
“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,” said Sir Howard Stringer, Sony’s Chairman, Chief Executive Officer and President. Mr. Stringer also noted that the acquisition will afford Sony operational efficiencies in engineering, network development and marketing, among other areas. “We can help people enjoy all our content – from movies to music and games – through our many devices, in a way no one else can.”
The deal between the two companies also gives Sony an intellectual property (IP) cross-licensing agreement and ownership of “five essential patent families” relating to wireless handset technology.
The transaction has already been approved by both companies and is expected to close in January 2012, pending that all necessary closing conditions and regulatory approvals are met.