Sony and Ericsson agree Separated

STOCKHOLM, - Sony and Ericsson agree Separated - Swedish telecommunications equipment vendor, Ericsson, said Thursday (27.10.2011), will sell its 50 percent stake in Sony Ericsson's theirs to its partner, Sony. The total value of these sales could reach 1.47 billion U.S. dollars.

"Sony will take a 50 percent stake in Sony Ericsson Ericsson mobile devices so that business is wholly owned by Sony," as stated by representatives of Ericsson said in a statement. Statement of Ericsson is confirming rumors that have long circulated that they would "come out" of the joint venture Sony Ericsson. In addition, this announcement is indirectly dismissed rumors that Sony would abandon this cooperation.

Cooperation "Japan-Sweden" was started in 2001 by combining Sony Ericsson's and then a cell phone products less marketable. The combination of these two vendors to make their current business into six major mobile devices.

In a statement, Ericsson demonstrated that the cell phone market has changed dramatically over the past decade, with the focus of a massive shift to smartphones.

"Ten years ago we agreed to form a joint venture. Merging knowledge of consumer products that are owned by Sony and Ericsson that has specialized in communications technology is the perfect mix for industrial control feature phone," said Ericsson Chief Executive Hans Vestberg in a statement.

"Today we have the same logical thinking, Sony will acquire our stake in Sony Ericsson and make it a part of the whole range of existing consumer products," said Hans Vestberg.

Furthermore, Ericsson will concentrate on the wireless market in full, by maximizing research and development and patent portfolio of the industry to realize the world is actually connected. Meanwhile, Sony will hold all intellectual property belongs to both of them together, covering all products and services from Sony, including the ownership of five important patents related to wireless handset technology.

Both companies will continue to work together, to create a wireless initiative that is expected to encourage and develop the market adoption of connectivity across multiple platforms.

Transactions amounted to 1.47 billion U.S. dollars in cash has been approved by both companies, but is still awaiting approval from regulators. The transfer of shares is expected to be completed in January 2012.