Sony close to buying out Ericsson from JV?

by XB on 6th October 2011

in News


Sony Ericsson splitThe Sony Ericsson joint venture turned 10 years old a few days ago. However, it may turn out to be the last year together. Sony is closing on a deal to buy Ericsson out of the JV according to the Wall Street Journal.

Sony would justify such a deal, which would cost them between €1 billion and €1.25 billion according to analysts, by highlighting the importance of smartphones with future consumer electronics such as gaming handhelds and tablets. Sony has seen how closely its competitors such as Apple and Samsung have coupled their smartphone and tablet devices and we imagine they would want to have more direct control over their smartphone strategy.

When Sony CEO, Sir Howard Stringer, was recently asked whether the joint venture makes sense, he replied “we talk a lot about this and we continue to talk.” The WSJ report says that Sony would like to move its operations in house to develop new innovative handsets more quickly.

Discussions over the SE structure has taken place regularly over the last few years. The key to understanding the value of the Ericsson business is by quantifying the value of mobile patents it holds. This could be a good move for Ericsson, where handsets are less important compared to its engineering focus. However, ultimately any deal is likely to come down to price.

Via WSJ.

  • If this lets Sony have more control, and being able to implement the other Sony brands in to more handsets even easier, then I’m all for this. Who else would be up for a Sony phone with a Bravia HD screen, Walkman music store and speakers, PlayStation controls and PS Store, VAIO quad-coreand Cyber-Shot 13mp camera with Handycam 1080p video recording. I’d love it lol

  • If this lets Sony have more control, and being able to implement the other Sony brands in to more handsets even easier, then I’m all for this. Who else would be up for a Sony phone with a Bravia HD screen, Walkman music store and speakers, PlayStation controls and PS Store, VAIO quad-coreand Cyber-Shot 13mp camera with Handycam 1080p video recording. I’d love it lol

  • Jg

    Hope this isn’t true…

  • Can I ask why?

  • As long as they has free access to Ericsson’s patents I’m for this. Let Ericsson do their engineering and innovations in communications. Let Sony build the multimedia devices.

    Android is in the war zone for “alleged” patent infringements at the moment, but I can’t see anyone going after SE on this front as they have both an extensive software and hardware patent portfolio. Hopefully buying out the Ericsson side of the venture doesn’t effect this (not also that while Google lost it’s bid for the Nortel patents, both Sony and Ericsson where part of the consortium that won).

    Also, I hope if this happens they keep using generic connectors etc like they have been over the last few phones (eg micro USB, headphones, sd cards).

  • Cssf09

    NOOOOOOOOOOOOOO :(

  • Anonymous

    It makes a lot of sense, as Samsung, LG, Apple and others companies already have “full control” over their phone’s business…

  • while se has been a good seller in the rest of the world they are having problems in the us,getting product placed with carriers. Verizon Play was unexpected, and att  didn’t want it, forcing se to pitch at the superbowl  with a million dollar commercial to show interest in the device. Att  picked up two Sony tablets to sell. Se has the capacity to compete with Samsung, but they have refused to compete with cutting edge hardware, preferring to wait for mfgring  costs on components to drop to increase margins. Look at the vita or even the ps3, Sony understands that you can make a stylish product with great hardware, and since phones sell for twice what a ps3 does, there’s plenty of room for profts.

  • Wael Faddah

    SONY CMD Z1, was the coolest phone EVER.  if sony now is going to build SONY phones that look like there new MP3 players, this is the best thing that could ever happen for the both of them.  but i wonder what will happen to the fan base on FB. 

  • Anonymous

    who cares? what you are talking about is just stupid branding. This branding and tech is already in SE phones and there is no reason why more can’t be integrated as it is with SE (Cybershot, Walkman, Exmor R, Bravia Engine).

    I think this overall will be bad news for SE fans as I think the Ericsson side are the ones who are more clued in and are the ones who’ve actually been providing most of the tech under the branding – hardware and especially software. A move which will destroy the only credible European smartphone manufacturer left (Nokia have lost it already). 

    What is needed from BOTH Sony and Ericsson is more commitment to the JV. The partners need to pump more cash into it as they are on the up these days. It is ridiculous that SE has been so underivested in recent years given the massive size. Considering Ericsson has the cash these days then it would make more sense for Ericsson to buy them out if anything.

    We need from Sony more integration with other Sony products and services – they really haven’t been pulling their weight in this regard.

    We need from Ericsson more cooperation with ST-Ericsson (at the moment they’re obsessed with Qualcomm – WTF?!)

  • Anonymous

    Sony will ruin the company. You think we would have open bootloaders, cooperation with devs and as much innovation or style from just Sony? I mean before SE Sony’s phones were crap an their latest tablets look awful.

    Sony is also a massive slow moving behemoth of a company that is too Japan and US focused. The fact that SE has been European-driven means that SE have had a different mindset to other mobile companies – this is a strength that will be lost. The fact that SE combined European and Japanese cultures was a strength – the Japanese alone are good at making machines and highly reliable technology, but woeful about understanding people and how they want to interact with technology.

  • CB

    and then everything started to get better sony make another buzz

  • Anonymous

    The only way I’d be happy about this is if it were a mere re-branding exercise with Ericsson dropping its stake to 40%.

    That way the European influence is still retained, whilst Sony can integrate the mobile division with its brand. To me at then moment it seems Sony is just not putting its weight behind SE due to pathetic and petty branding politics.

  • Xyu

    fuck europe and its stupid companies that need one year to get new phones to North America.

  • Anonymous

    Blame your shitty American mobile networks for not providing the subsidies.

    Europe doesn’t get half of your shitty US phones either, nor do we want to be left with them as our only choice.

  • Ethan ‘blaze’ Parker

    I can’t believe this is true to the core today and actually surpassed your expectations. lol

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