Sony and Ericsson have just announced in a press release that the former will acquire Ericsson’s 50% stake in their Sony Ericsson partnership. This move will make Sony the sole owner of handset division, thus ending this long partnership.
This move will allow Sony to integrate its smartphones into their network-connected electronic devices like their BRAVIA TVs, Personal Computers and much more. Sony will also gain access to a broad intellectual property cross-licensing agreement covering all its products and services along with the ownership of five essential patent families relating to wireless handset technology. Sony will need to pay Ericsson EUR 1.05 Million in cash for buying their 50% stake.
The transaction has already been approved by all the members of both the companies, and is expected to close in January 2012.
The Sony Ericsson partnership started way back on October 1, 2001, and comes to an end after a decade. Both the companies entered into the partnership to turn their unprofitable handset operations into a profit making business, and were successful to a certain extent. However, for the last few years, Sony Ericsson had been going through a tough time, and was suffering major losses.