Sony going to buy out Ericsson’s stakes in SE joint venture

Posted on Oct 11 2011 - 10:53am by Thomas Sharp

Sony Corp. is getting closer and closer to an agreement to purchase Ericsson’s stakes in their smartphone venture, reports the Wall Street Journal.

Talks between Sony and Ericsson, which held discussions regularly over the years about Sony Ericsson Mobile Communications AB’s ownership structure, may fail according to the publication. When asked to comment about the issue, spokesmen from both companies declined to comment.

If Sony will have full control of Sony Ericsson Mobile Communications AB, which is based in London, smartphones running on Google’s Android operating system would be added to Sony’s device business, while leaving Ericsson to concentrate on the sales of its wireless transmission equipment and services. Also, if Sony is given full control of the venture, it will be able to integrate the company’s smartphone business with its other products.

“This would make sense for both Ericsson and Sony,” said Haakan Wranne, an analyst at Swedbank Markets. “The current venture doesn’t maximize the potential of Sony’s presence and assets in gaming, and is diluting what could be a bigger-profile Sony offering.”

Wranne also said that the deal may value Ericsson’s stake at around 1.4 billion euros or $1.9 billion. Wall Street journal also said that Ericsson’s 50 percent stake could be between 1 billion and 1.25 billion euros.

The said integration has been evidenced by recent products, with the Bravia technology being integrated into smartphone displays, and the Sony Ericsson Xperia Play, which seems to have its roots on the PlayStation Portable and PlayStation gaming consoles.



via: WSJ

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