Sony buys out Ericsson's stake of Sony Ericsson for 1.05 billion EUR

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Sony Corporation has just announced that it will purchase Ericsson's share of the two companies' mobile joint venture, Sony Ericsson. As a result, Sony Ericsson will become a wholly-owned subsidiary of Sony, and will become a part of the company's family of network-connected consumer electronics.

Sony and Ericsson started their joint venture back in 2001, with each company owning exactly half of Sony Ericsson. Sony will pay Ericsson 1.05 billion EUR (US$1.47 billion) in cash for its 50 percent stake of the company, and will receive a "broad IP cross-licensing agreement and ownership of five essential patent families" that relate to wireless handsets.

Both companies have already approved the transaction, which is expected to close in January 2012, pending regulatory approval. Sony says that by owning the mobile company in its entirety, it will be able to offer smartphones, laptops, tablets, and televisions that work together seamlessly. "This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want," says Sony president, chairman, and CEO Howard Stringer. "We can help people enjoy all our content - from movies to music and games - through our many devices, in a way no one else can."