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By 27 October 2011 | Categories: news

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In the latest stunning move to hit the technology industry this year, Sony Corporation and Telefonktiebolaget LM Ericsson have agreed that Sony will acquire Ericsson’s stake in Sony Ericsson, to make the joint venture a wholly owned subsidiary of Sony. 

This means that when the deal is done, Sony Ericsson will become a standalone division within Sony Corporation. 

The company explained that the Xperia smartphone will serve as a cornerstone to Sony's unique "four screen" proposition, integrating the Xperia smartphone portfolio into its existing tablet, TV, videogame and personal computer businesses. This is intended to deliver a more powerful "four screen" experience enabling a connected PC, TV, tablet and smartphone experience for consumers.

The move is not entirely surprising; earlier this month we reported that according to the Wall Street Journal, Japanese tech giant Sony was apparently making moves towards buying out Ericsson’s share in its joint Sony Ericsson mobile venture.  

The rumours at that time pointed to Sony desiring to integrate the world’s sixth-largest cellphone manufacturing division more deeply within its own in-house operations. 

Additionally, the integration of this division with its businesses in tablets, hand-held game machines, as well as PCs, would apparently enable Sony to save on costs and enhance the synchronisation process for the development of its mobile devices.

In the first week of October, the deal was awaiting a proper valuation of Sony Ericsson, as well as an agreement on a price for  Ericsson's mobile technology patents, reportedly worth between $1.3 and $1.7 billion (approx. R10.3 - R13.5 billion). 

In recent news, Sony issued an alert on some of its Bravia TVs, warning of a faulty component that may cause overheating. 

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