Sony announced that it would acquire Ericsson’s 50% stake in their handset joint venture for $1.46 billion, ending a roller-coaster ride of a partnership that failed to make significant inroads into the device market despite the brand recognition of its parent companies. The venture was initiated in late 2001 as a combination of both party’s unprofitable handset operations.
In a statement the companies said the transaction is a logical strategic step in that Sony continues to focus on devices and Ericsson’s waning emphasis on that market. Ericsson is focused on the global wireless market as a whole, while Sony will have a broad intellectual property cross-licensing agreement covering all products and services as well as ownership of five essential patent families relating to wireless handset technology.
The buyout is expected to close in Jan. 2012, subject to customary closing conditions, including regulatory approvals.
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