Sony and Ericsson to Split in January 2012

Sony Ericsson, the mobile phone manufacture, who hasn’t been doing so well in recent times, is going to be bought by Sony. Yes, that’s right, starting from January 2012, there will be no Sony Ericsson, but just Sony, and the SE mobile phones will bear the brand name Sony. This break up was long rumored, and finally it has now happened.

In an official Press release, Sony announced that they’ll be ending their partnership with Ericsson and will therefore buy all of their stakes in the company. Ericsson and Sony were 50-50 partners, thus Sony had to purchase 50 percent shares that Ericsson owned, which amounts to about 1.05 billion Euros. Sony’s Chairman, Chief Executive Officer and President, Sir Howard Stringer said;

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. With a vibrant smartphone business and by gaining access to important strategic IP, notably a broad cross-license agreement, our four-screen strategy is in place. We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment. This includes Sony’s own acclaimed network services, like the PlayStation Network and Sony Entertainment Network. 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.

He also confirmed that Sony will stop the production of Walkman or other feature phones and will only stick to Android based smartphones. This will give them more control over the integration of all their products and devices such as TV’s, Notebooks, Tablets etc. The deal has been confirmed and Ericsson will move on to concentrating more on wireless technologies and making wireless communications faster and better. It’ll be finalized in January 2012 and henceforth, Sony and Ericsson will not be seen together.

All your Sony Ericsson devices will be called by the name Sony and new products will carry the same name as well. Sony might also buy HP’s WebOS, there is a slight chance that might happen. We will have to wait and watch what happens.

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