Sony buys Ericsson out of partnership

Sony to part ways with Ericsson

 

Technology giant Sony Corporation has ended its 11-year-long relationship with Telefonaktiebolaget LM Ericsson in the smartphone-maker, Sony Ericsson. In a statement issued by Sony, the company state that it has acquired Ericsson’s 50% stake in Sony Ericsson (The 50% share was reportedly bought for €1.05 billion)- making the mobile phone manufacturer a wholly-owned subsidiary of Sony Corporation.

The partnership, which started in 2001, saw Sony buying half of an already existing Ericsson business and bringing to the phone manufacturer its expertise in the creation of mobile music devices and cameras. The joint venture first married their technologies with the creation of the Sony Ericsson Walkman and Sony Ericsson Cyber-shot. Since the partnership went on to embrace new technologies; adopting Google’s Android OS as the preferred operating system for their phones starting with Xperia 10 (earlier models used Windows Mobile OS).

Sony has also announced that with effect from February 2012, it will change the company name from Sony Ericsson Mobile Communications International AB to Sony Mobile Communications AB. This may also mean the end for the brand “Sony Ericsson”. Models released after February may just be branded “Sony”.

Sony’s head office remains in London, UK. According to the company, it currently has 8000 employees across its offices.

– seniorjournalism.com Staff Reporter