Feeds

Sony and Ericsson divorce

Sony gets the business, Ericsson the cash ...

Using blade systems to cut costs and sharpen efficiencies

Sony is paying €1.05bn in cash to buy out its partner in mobile telephony, though it gets ongoing patent rights and ownership of some key intellectual property as security.

The deal has been approved by both sides, and is expected to complete by January, enabling Sony to start dropping mobile phones into its whole product range and letting Ericsson concentrate on the network infrastructure at which it excels.

Sony Ericsson was a jointly owned company that has been making phones for the last decade or so, based on Sony's experience of consumer electronics and Ericsson's knowledge (and patents) in radio technologies. That made a lot of sense 10 years ago, when radio was arcane, but these days the radio component of a smartphone is just a drop-in module along with Wi-Fi, Bluetooth and all the other bits which make up a smartphone.

And it is smartphones that Sony wants to concentrate on. Having demonstrated that its Android handsets can bring in greater revenue from a smaller market share, the company has already committed to making its whole portfolio smart over the next 12 months.

Sony Ericsson was always a marriage of convenience, and frustration: the company lobbied ceaselessly for access to the Sony brands, PlayStation in particular, with little success until very recently.

Which was surely an indication of the way things would go, and have gone. Sony does seem to have got itself a bargain – JP Morgan reckoned Ericsson would pocket 1.3bn and ongoing patent fees – but Sony has negotiated itself a cross-licensing deal along with ownership of key patents, really the most amicable of separations. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.