A takeover has been the subject of rumors for several weeks now, but today, Sony announced that it will take complete control of Sony Ericsson with a €1.05 billion (approx. $1.47 billion) buyout. Sony Ericsson will now become part of the Sony family, wholly-owned by the Japanese company.
The deal is good news for Sony Ericsson fans, who can now expect better integration between their Sony smartphones, tablets, laptops, and televisions — with seamless connectivity that will “open up new worlds of online entertainment,” promises Howard Stringer, Sony’s CEO.
Sony will also take ownership of the patents relating to wireless handset technology through a cross-licensing agreement with Ericsson, according to Stringer:
“The transaction gives Sony an opportunity to rapidly integrate smartphones into its broad array of network-connected consumer electronics devices – including tablets, televisions and personal computers – for the benefit of consumers and the growth of its business. The transaction 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 essential patent families relating to wireless handset technology.”
“With a vibrant smartphone business and by gaining access to important strategic IP, notably a broad cross-license agreement, our four-screen strategy is in place. We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment. This includes Sony’s own acclaimed network services, like the PlayStation Network and Sony Entertainment Network.”
The deal is expected to close in January 2012, subject to the necessary approvals, and could spell an exciting lineup of smartphones from Sony next year.
I’m excited to see what Sony will do with its smartphone family now that it has complete control of the Sony Ericsson brand, and I have a feeling more PlayStation certified handsets are on their way. How do you feel about the takeover?