Sony buys Ericsson out of mobile phone venture
The deal to buy out its Swedish partner will enable Sony to better integrate smartphones and other devices with its array of content, from its music label whose stars include Beyonce and Britney Spears, its movie studio whose current hits include Spider Man and Anonymous and its Playstation video games such as Legends of Norrah.
The deal will give Sony ownership of certain handset patents held by Ericsson and will enable it to cut costs in the Sony Ericsson business, with Stringer pointing to savings in operations, R&D and marketing.
The takeover of Sony Ericsson by the Japanese group had long been talked of and a source with knowledge of the matter told Reuters this month a deal was in the offing.
"Sony had to make this deal as it had run out of options, but integration challenges could prove to be a major hurdle," said Ben Wood, head of research at consultancy CCS Insight.
Sony Corp is to take over its mobile phone joint venture with Ericsson for 1.05 billion euros ($1.5 billion)
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