Ericsson and Sony Corporation have signed a Memorandum of Understanding (MoU) with the intention to create a new company that will incorporate their respective mobile phone businesses worldwide.
The new company, to be named Sony Ericsson Mobile Communications, will be equally owned by Ericsson and Sony and will draw upon Ericsson’s expertise in telecommunications and Sony’s expertise in consumer electronics products. Expected to begin operations on October 1 this year, subject to completion of a definitive agreement and applicable regulatory requirements, the joint venture will be responsible for product research, design and development, as well as marketing sales, distribution and customer services.
Ericsson and Sony, parents of the joint venture, will provide support to the new company, and foster closer cooperation with each other.
Global corporate management of the joint venture will be based in London and headed by Katsumi Ihara, Corporate Executive Vice President of Sony Corporation, who will be named President of the joint venture. Kurt Hellstrom, President and CEO of Ericsson, will be appointed Chairman of the Board. Jan WÃ¤reby, President of Ericsson’s Division Consumer Products, will assume the role of Executive Vice President of the joint venture.
While respecting existing product lines under the Ericsson and Sony brands, the new company will create a new brand for its range of future products. Ericsson’s existing manufacturing partners and Sony’s production facilities will continue to manufacture current and future products worldwide. Ericsson’s Mobile Technology Platform unit will remain as a separate organization and will supply technology to the new company.