Sony completes acquisition of joint venture with Ericsson

Sony completes acquisition of joint venture with Ericsson

Sony has completed the acquisition of Ericsson's stake in the pair's former joint venture, making Sony Ericsson a wholly-owned subsidiary of the manufacturer.

Bert Nordberg [pictured] will remain as president and CEO. Ericsson received €1.05bn for its stake. In a short statement, a Sony spokesperson said: 'Sony will rename Sony Ericsson “Sony Mobile Communications”, and further integrate the mobile phone business as a vital element of its electronics business, with the aim of accelerating convergence between Sony’s lineup of network-enabled consumer electronics products, including smartphones, tablets, TVs and PCs.'

The challenge facing the business is stark. For its 2011 financial year, it made a loss of €247m with sales down 17.1% to €5.21bn. Its fourth quarter was particularly tough, with an operating loss of €227m (£189.4m), compared to operating income of €39m (£32.5m) for Q4 2010. Sales were also down in its fourth quarter to €1.29bn (£1.08bn) in 2011, from €1.53bn (£1.28bn) in 2010.

However, the manufacturer is prepared to spend big to promote its forthcoming Xperia S. The flagship device launches next month, backed by an estimated £15m marketing campaign.

Written by Mobile Today
Mobile Today

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