Sony Buys Out Ericsson for $1.47 Billion
October 27, 2011 9:46 AM
comment(s) - last by
Sony has described the buyout as "magical"
Mobile devices like smartphones and tablets have
become an essential part
of many people's everyday lives, and for that reason, Sony is absorbing the entirety of its mobile partnership with Ericsson.
Reports in regards to
Sony's interest in taking over
started circulating earlier this month, with analysts estimating that the deal could be worth around $1.3 billion. But now, it has been announced that the buyout price is $1.05 billion euros, or $1.47 billion.
Currently, Ericsson phones have no connection with Sony's content despite the mobile joint venture between the two. Sony has a music label, a movie studio and of course the PlayStation gaming systems like PS3, PSP and the
upcoming PS Vita
. The company is looking to link this content with the Ericsson phones, much like Apple, which makes its own devices (i.e., the iPhone) and connects them with similar operating systems and programs, such as iTunes.
In fact, Sony is even beginning to sound like Apple, referring to the $1.47 billion buyout of Ericsson as "magical."
"It's the beginning of something which I think is quite magical," said Sir Howard Stringer, Sony chairman. "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."
Sony will receive ownership of five wireless handset patent families as well as an intellectual property cross-licensing agreement that covers all of the company's products and services. Stringer noted that ownership of such patents will lead to a reduction in costs in the way of operations, R&D and marketing.
In addition, Sony could potentially make up for
in the smartphone race. But that doesn't mean that there aren't obstacles ahead for Sony.
"Sony had to make this deal as it had run out of options, but integration challenges could prove to be a major hurdle," said Ben Wood, head of research at consultancy CCS Insight. "As a major consumer electronics player, lack of mobile assets had become a liability for Sony, particularly when compared with Samsung, whose telecommunication business creates nearly half of its profits."
Hans Vestberg, Ericsson chief executive, plans to use the money from the buyout to "strengthen its balance sheet," but doesn't foresee paying it out to shareholders.
The next step will be to see if Sony can pull it off now that it has all the tools to launch a healthy competition against the likes of Apple and Samsung. But many are skeptical of Sony's abilities after the company took several security hits earlier this year from hackers who
repeatedly targeted Sony
This article is over a month old, voting and posting comments is disabled
Dr of crap
Dr of crap
10/27/2011 10:18:50 AM
You're laughing at his froyo reference?
I still use XP on my 10 years PC - want to laugh at me to?
10/27/2011 1:18:43 PM
I think he is referring to the fact that Sony still has not released an update for an OS that was released over a year ago..
I don't think that was a personal attack..
(nor do I think anyone cares that you still use a 10 year old PC)
10/28/2011 12:39:04 AM
That explains quite a bit. I recommend finding a job so you can afford to move out of your Mom's basement... and coincidentally afford a computer that runs W7.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
PlayStation Vita to Arrive February 2012
October 19, 2011, 10:14 AM
Sony Looking to Buy Ericsson Share of Mobile Phone Partnership
October 7, 2011, 12:28 PM
Most New Cell Phone Purchases are Smartphones in U.S., Says Nielsen
June 30, 2011, 4:50 PM
Sony Loses Yet More Customer Records, 3 More Sites Hacked
May 25, 2011, 8:16 AM
Sony Ericsson U.S. Head Steps Down
March 24, 2009, 1:46 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information