Sony Ericsson announces buyout

Sony is set to buy out Ericson, its 10 year business partner, for $1.47 billion. The deal will make Ericson a wholly owned subsidiary of Sony.

LOS ANGELES, CA (Catholic Online) - The deal which has been rumored for almost a month, will allow Sony to take ownership of mobile phone patents and other patent rights via a license with Ericsson. The deal will improve Sony's efficiency and competitiveness in the world marketplace.
For consumers, this means they can expect greater integration between Sony's phones and the other devices in the companies "four screen strategy".

Sony chief executive Howard Stringer said, "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."

The 10 year partnership between Sony and Ericsson allowed Sony to combine their electronics expertise with Ericsson's abilities in telecommunications in order to develop new devices. Customers can expect more of the same. 

Despite the buyout, Sony is announcing that the two companies will remain partners as they undertake new projects. Currently, Sony is developing smart phones and is making an effort to wirelessly connect a variety of platforms to one another. Such a seamless integration will increase value to consumers who will soon be able to use their televisions, computers, tablets, and phones almost interchangeably.

A large part of the deal is the acquisition of patent rights. Often, mergers are made to secure patent rights. Securing those rights can stave off lawsuits and diminish competition. In its statement Sony said, "The transaction also provides Sony with a broad intellectual property cross-licensing agreement covering all products and services of Sony as well as ownership of five essential patent families relating to wireless handset technology."

It has not yet been announced when the deal will be finalized.

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