Sony announced that it will acquire Ericsson’s 50 percent stake in Sony Ericsson Mobile Communications AB and Sony will get custody of the entire mobile handset business a wholly owned subsidiary of Sony.
Sony will rapidly integrate smart phones into its electronic device offerings including tablets televisions, computers, games and consumer electronics. Sony recently announced that will focus on Android smartphones.
Sony will then also own by the essential patents families that relate to wireless handset technology.
When Sony Ericsson started its operations on October 1, 2001, it combined the unprofitable handset operations from Ericsson and Sony. Following a successful turnaround the company has become a market leader in the development of feature phones by integrating Sony’s strong consumer products knowledge and Ericsson’s telecommunications technology leadership. The WalkmanTM phone and Cyber-shotTM phone are well known examples.
With the successful introduction of the P1 in 2007, Sony Ericsson established itself in the smartphone segment. More recently, the company has successfully made the transition from feature phones to Android-based Xperia smartphones. By the end of the third quarter of 2011, Sony Ericsson held a market share of 11 percent (by value) in the Android phone market, representing 80 percent of the company’s third quarter sales.
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.