In October 2011, Ericsson and Sony announced that they would get separate as Ericsson sells its 50% venture in mobile phone make Sony Ericsson to Sony for $1.46 billion.
Sony Ericsson now became a utterly owned subsidiary of Sony and incorporated into Sony’s platform of network connected consumer electronics products. The step was extensively predictable by the analysts, who concluded that Sony Ericsson could become more competitive beneath the sole ownership of Sony in this tough market.
The joint venture was set up in the year 2001 for 10 years to take on Nokia which was the top mobile manufacturers at that time. The 50-50 partnership has been under scrunity by Japanese company – Sony, after the company adage the demand of smartphones in the market. The deal was estimated to close in January 2012, which was subject to authoritarian approval.
Sony CEO, Sir Howard Stringer said “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”. He also added that the deal also includes Sony’s PlayStation Network and its online provider of music, games and video, Sony Entertainment Network. He called the dal as “the last piece of the puzzle” for the Sony’s portfolio and its services.
Ericsson CEO Hans Vestberg also added to this deal, “Ten years ago when we formed the joint venture, thereby combining Sony's consumer products knowledge with Ericsson's telecommunication technology expertise, it was a perfect match to drive the development of feature phones. Today we take an equally logical step as Sony acquires our stake in Sony Ericsson and makes it a part of its broad range of consumer devices”.
Ericsson said that it will now spotlight on the global wireless market as a whole and also aims to providing benefits to people, business and society beyond phones through wireless connectivity.
