Sony ditches Ericsson after 10 year long mobile marriage

Lee Bell
October 27, 2011
4 Comments

sony ericsson splitSony Corporation has finally confirmed that it is to takeover Ericsson’s stake in mobile phone partnership Sony Ericsson.

The news hasn’t come as too much of a surprise, as the news that the company were planning on focusing solely on manufacturing smartphones next year due to a loss in profits gave way to many rumours and predictions of the same nature. After 10 years of mobile marriage too. It brings a small tear to our eyes.

It’s not all bad though. The deal may place Ericsson’s 50% stake in the joint venture under the Japanese giant’s control, but has offered them a juicy lump sum of £918.1 million. Might sound like a meaty amount, but will it be enough to substitute the loss of such a well established partner? Apparently, the two companies have also entered into a cross-licensing agreement for their intellectual property.

In a report by Mashable, Sony CEO, Sir Howard Stringer, said:  “This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want.”

Sony said the reason for the acquirement will enhance its “four-screen strategy” — televisions, laptops, tablets and mobile phones, selling content through the PlayStation Network and the Sony Entertainment Network.

Alongside the announcement, Sony said it will also acquire five wireless technology “patent families”. Speaking of patents, the wars are still raging on. Apple and Samsung are currently locked in legal battle over just that, while Google recently bought Motorola to grab Moto’s patent portfolio and strengthen its position should Apple aim a legal challenge at Android.

Sony and Ericsson – who started their joint venture in 2001 in an effort to turn their unprofitable mobile handset divisions around – isn’t the cream of the crop of the mobile phone world like it once was. The company has focused on Android devices in recent years with the Xperia Arc and the Xperia Play, which was also known as the mobile gaming centred “Playstation phone” but they failed to meet up to expectations. Something to do with the iPhone, perhaps?

Are you an avid Sony Ericsson customer? Do you think ditching good old Eric is a good move on Sony’s half?

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Tags: android, Apple, Article, ericsson, Google, iPhone, patent, Sony, Sony Ericsson
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