Ericsson and Sony Corporation have announced that Sony will acquire Ericsson’s 50 percent stake in Sony Ericsson Mobile Communications AB, making the mobile handset business a wholly-owned subsidiary of Sony. This deal had been rumored for a while as Sony seeks to expand their integration between their mobile and other divisions in the same way we see Microsoft doing with Windows Phone. As part of the transaction, Ericsson will receive a cash consideration of EUR 1.05 billion. Honestly, I think at that price Sony is getting a steal and it should work out well for both companies.
The transaction gives Sony an opportunity to rapidly integrate smartphones into its broad array of network-connected consumer electronics devices – including tablets, televisions and personal computers – for the benefit of consumers and the growth of its business. The transaction also provides Sony with a broad intellectual property (IP) cross-licensing agreement covering all products and services of Sony as well as ownership of five essential patent families relating to wireless handset technology.
The transaction, which has been approved by appropriate decision-making bodies of both companies, is expected to close in January 2012, subject to customary closing conditions, including regulatory approvals.