Feeds

Sony and Ericsson divorce

Sony gets the business, Ericsson the cash ...

The Essential Guide to IT Transformation

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. ®

Build a business case: developing custom apps

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Speak your brains on SIGNAL-FREE mobile comms firm here
Is goTenna tech a goer? Time to grill CEO, CTO
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.