The End of Sony Ericsson !!!

Ericsson and Sony Corporation, on the 27th of October,  announced that Sony will acquire Ericsson's 50 percent stake in Sony Ericsson Mobile Communications for 1.05 Billion Euro, making the mobile handset business a wholly-owned subsidiary of Sony.

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.

As part of the transaction, Ericsson will receive a cash consideration of EUR 1.05 billion.

Remember the Walkman Phone !

During the past ten years the mobile market has shifted focus from simple mobile phones to rich smartphones that include access to internet services and content. The transaction is a logical strategic step that takes into account the nature of this evolution and its impact on the marketplace.

SE Xperia X1

When Sony Ericsson started its operations on October 1, 2001, it combined the unprofitable handset operations from Ericsson and Sony. Following a successful turnaround the company has become a market leader in the development of feature phones by integrating Sony's strong consumer products knowledge and Ericsson's telecommunications technology leadership. The Walkman^TM phone and Cyber-shot^TM phone are well known examples.

Xperia Arc

With the successful introduction of the P1 in 2007, Sony Ericsson early on established itself in the smartphone segment. More recently, the company has successfully made the transition from feature phones to Android-based Xperia(TM) smartphones. By the end of the third quarter of 2011, Sony Ericsson held a market share of 11 percent (by value) in the Android phone market, representing 80 percent of the company's third quarter sales. During its ten years in operation Sony Ericsson has generated approximately EUR 1.5 billion of profit and paid dividends totalling approximately EUR 1.9 billion to its parent companies. Prominent models include "Xperia^TM arc" and "Xperia^TM mini" which received 2011 EISA Awards, while recent notable additions to the lineup include "Xperia^TM PLAY" and "Xperia^TM arc S".

Xperia Play

• Sony Ericsson to become a wholly-owned subsidiary of Sony and integrated into Sony's broad platform of network-connected consumer electronics product
• The transaction also provides Sony with a broad IP cross-licensing agreement and ownership of five essential patent families
• Ericsson to receive EUR 1.05 billion cash payment
• Sony and Ericsson to create wireless connectivity initiative to drive connectivity across multiple platforms