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Sony buys out Ericsson's stake in Sony Ericsson joint mobile venture
The $1.47 billion dollar move gives Sony the chance to integrate smartphones more tightly within its tablets, media services, and gaming consoles
We may see more devices like the PlayStation Phone from Sony
Published on Oct 27, 2011
After months of rumors, Sony has just bought out Ericsson's 50% stake in Sony Ericsson, effectively assuming complete ownership of the entire mobile venture.
The Japanes electronics maker said in a press release today that it will pay Ericsson $1.47 billion in the deal, which includes several sets of patents and a cross-licensing agreement for IP.
Up until now, Sony has only launched its smartphones through the joint venture, which began way back in 2001. The deal will allow the company to finally fully integrate phones into its overall product lineup, as competitors Apple and Samsung do currently. The company also hopes to make better use of its massive music and movie catalog.
"Its the beginning of something which I think is quite magical," said Sony's chairman and chief Executive Sir Howard Stringer. "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."
Overall, the recent boom in smartphones based on iOS and Android has not been kind to the joint venture as general mobile sales have tanked. This past Q3 earnings report was actually the first time in years that the venture broke even, so the move is definitely a good thing.
So, can Sony suceed and build an integrated system like Apple and Samsung? Too early to tell, but Sony has been notorious for not integrating their products in hte past, so I tend not to be otimistic. Of course, as always, its possible they turned over a new leaf.
It's important to note that Ericsson is not leaving the company completely, and the two titans will meet on a regular basis to discuss wireless and how best to integrate Sony products into smartphones. It will also examine how to build a new brand for Sony.
If you're a Sony fan and smartphone fanatic, this is definitely a move you should be excited about. Expect some great things in the coming months.
Image Source: Engadget
