Sony plans to buy out a stake in Sony Ericsson

More recently, it was reported that Sony is going to acquire 100% of the assets of the joint venture Sony Ericsson. Now Sony is paying more and more attention to mobile devices, and it is clear that one company is easier to manage the development of the mobile line than in the case of co-management. Sony Ericsson is currently owned by Japanese and Swedish companies, each of which owns 50% of the assets.



So far, the acquisition of 100% of the assets of Sony Ericsson - only plans, negotiations on the possibility of such a transaction, conducted with the Swedish partner, are in the earliest stage. In case of success, and the implementation of plans to buy out a partner share, Sony will actively integrate mobile devices into the general production infrastructure, including game consoles, laptops and tablets. The integration process will also include software; various kinds of company services will be able to work on all the classes of devices mentioned.

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Among other things, now the partnership with Ericsson rather strongly hinders Sony, especially considering the competition with such whales as mobile devices like Apple, Samsung, and other companies. The need to harmonize some plans with a partner from another country hinders the adoption of key decisions, which ultimately affects the overall development strategy of Sony Ericsson.



Now the total cost of Sony Ericsson is not so great compared to other companies. Experts estimate Sony Ericsson at about 1 billion euros. Thus, in order to gain complete control over the company, Sony will need to pay the partner about 500 million euros. However, in the way of Sony not only difficulties in the form of financial contributions. Before you pay, you need to agree with a partner, and this is not so simple - the leadership of Ericsson may simply not want to give up its stake in a joint venture.



Via wsj