Sony's grand ten-year joint venture with Ericsson (the maker of telecommunications technology), has come to an end with a formal buyout of the latter's $1.47 billion shareholdings in the mobile communications market. The buyout gives birth to a new brand - Sony Mobile Communications - which industry-watchers view as a smart move by the leading electronics company.
The company's new decision aims at integrating the mobile phone business as a vital element of its electronics business. The aim is accelerating convergence between Sony's line-up of network-enabled consumer electronics products, including smart phones, tablets, TVs and PCs, the company said in a statement announcing the deal's closure.
The last major hurdle for the acquisition of Ericsson's $1.47 billion deal was cleared after seeking successful approval from the European Commission last October. Sony also secured the ownership of mobile patents through another smart cross-licence deal with Ericsson.
With the strategic acquisition of Ericsson, Sony is poised for a potential new stint in the mobile communications market as an independent mobile-maker, competing against the likes of Apple, Samsung and HTC to join the elite league. Sony's huge market share in the consumer electronic goods coupled with the latest mobile communications acquisition should pave the way for larger profits for the company in the coming months, analysts reckon.