Sony looking to take full control of Sony Ericsson?

7 Oct 2011

Sony Ericsson Xperia Arc

Sony is rumoured to be close to a deal to gain full control of Sony Ericsson, 10 years after Sony and Ericsson created the 50-50 mobile phone joint venture.

The Wall Street Journal reports that Sony wishes to integrate the smartphone company with its consumer products group alongside its gaming, tablet and PC offerings.

Talks are reportedly ongoing and could break apart at any time. While no figure for Sony’s potential buyout of Sony Ericsson was revealed, analysts estimate Ericsson’s stake in the smartphone operations could be valued between €1bn and €1.25bn.

The smartphone has made huge advancements in recent years, becoming many people’s go-to device for internet access, gaming and media consumption. The move could place Sony in a stronger position to take on companies such as Apple and Samsung.

Many Sony services have already been included with recent Sony Ericsson devices, such as PlayStation gaming and BRAVIA branded displays.

If Sony Ericsson became fully owned by Sony, then the integration of Sony’s technology in new devices could be done quicker, which is a hugely important factor considering the speed at which smartphone technology is evolving.

Ericsson’s core business has also become more focused in delivering telecommunications networking equipment to operators as opposed to consumer technology. BBC reports that Ericsson shares rose nearly 8pc after news broke of Sony’s potential buyout of Sony Ericsson.