Sony takes control of Sony Ericcsson mobile phone firm

Electronics manufacturer Sony is to acquire Ericsson’s 50 per cent stake in Sony Ericsson Mobile Communications, making the mobile handset business a wholly-owned subsidiary of Sony.

The transaction gives Sony opportunity to rapidly integrate smartphones into its product line of network-connected consumer electronics devices, including tablets, televisions and personal computers.

It also provides Sony with a broad intellectual property (IP) cross-licensing agreement, covering all products and services of Sony, as well as ownership of five patent lines relating to wireless handset technology.

As part of the transaction, Ericsson will receive a cash consideration of €1.1bn.