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Sony to Acquire Ericsson's Share of Sony Ericsson
LONDON, October 27, 2011/PRNewswire/ --
- Sony Ericsson to become a wholly-owned subsidiary of Sony
and integrated intoSony's broad platform of network-connected consumer
electronics products
- The transaction also providesSonywith a broad IP cross-licensing
agreement and ownership of five essential patent families
- Ericsson to receive EUR 1.05 billion cash payment
- Sony and Ericsson to create wireless connectivity initiative to
drive connectivity across multiple platforms
Sony Corporation ("Sony") and Telefonaktiebolaget LM Ericsson
("Ericsson") today announced that Sony will acquire Ericsson's 50 percent
stake in Sony Ericsson Mobile Communications AB ("Sony Ericsson"), making
the mobile handset business a wholly-owned subsidiary of Sony.
The transaction gives Sony an opportunity to rapidly integrate
smartphones into its broad array of network-connected consumer electronics
devices - including tablets, televisions and personal computers - for the
benefit of consumers and the growth of its business. The transaction also
provides Sony with a broad intellectual property (IP) cross-licensing
agreement covering all products and services of Sony as well as ownership of
five essential patent families relating to wireless handset technology.
As part of the transaction, Ericsson will receive a cash consideration
of EUR 1.05 billion.
During the past ten years the mobile market has shifted focus from
simple mobile phones to rich smartphones that include access to internet
services and content. The transaction is a logical strategic step that takes
into account the nature of this evolution and its impact on the marketplace.
This means that the synergies for Ericsson in having both a world
leading technology and telecoms services portfolio and a handset operation
are decreasing. Today Ericsson's focus is on the global wireless market as a
whole; how wireless connectivity can benefit people, business and society
beyond just phones. Consistent with that mission, by setting up a wireless
connectivity initiative, Ericsson and Sony will work to drive and develop
the market's adoption of connectivity across multiple platforms.
"This acquisition makes sense for Sony and Ericsson, and it will make
the difference for consumers, who want to connect with content wherever they
are, whenever they want. With a vibrant smartphone business and by gaining
access to important strategic IP, notably a broad cross-license agreement,
our four-screen strategy is in place. 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. This includes Sony's own acclaimed network services, like the
PlayStation Network and Sony Entertainment Network," said Sir Howard
Stringer, Sony's Chairman, Chief Executive Officer and President. Mr.
Stringer also noted that the acquisition will afford Sony operational
efficiencies in engineering, network development and marketing, among other
areas. "We can help people enjoy all our content - from movies to music and
games - through our many devices, in a way no one else can."
"Ten years ago when we formed the joint venture, thereby combining
Sony's consumer products knowledge with Ericsson's telecommunication
technology expertise, it was a perfect match to drive the development of
feature phones. Today we take an equally logical step as Sony acquires our
stake in Sony Ericsson and makes it a part of its broad range of consumer
devices. We will now enhance our focus on enabling connectivity for all
devices, using our R&D and industry leading patent portfolio to realize a
truly connected world," said Hans Vestberg, President and CEO of Ericsson.
When Sony Ericsson started its operations on October 1, 2001, it
combined the unprofitable handset operations from Ericsson and Sony.
Following a successful turnaround the company has become a market leader in
the development of feature phones by integrating Sony's strong consumer
products knowledge and Ericsson's telecommunications technology leadership.
The WalkmanTM phone and Cyber-shotTM phone are well known examples.
With the successful introduction of the P1 in 2007, Sony Ericsson early
on established itself in the smartphone segment. More recently, the company
has successfully made the transition from feature phones to Android-based
Xperia(TM) smartphones. By the end of the third quarter of 2011, Sony
Ericsson held a market share of 11 percent (by value) in the Android phone
market, representing 80 percent of the company's third quarter sales. During
its ten years in operation Sony Ericsson has generated approximately EUR 1.5
billion of profit and paid dividends totaling approximately EUR 1.9 billion
to its parent companies. Prominent models include "XperiaTM arc" and
"XperiaTM mini" which received 2011 EISA Awards, while recent notable
additions to the lineup include "XperiaTM PLAY" and "XperiaTM arc S".
The transaction, which has been approved by appropriate decision-making
bodies of both companies, is expected to close in January 2012, subject to
customary closing conditions, including regulatory approvals.
As a result of obtaining full control of Sony Ericsson, Sony will
consolidate Sony Ericsson from the closing date of the acquisition. The
resulting impact of the acquisition to Sony's consolidated results for the
fiscal year ending on March 31, 2012 is currently being evaluated.
Facts about Sony Ericsson
Sales (FY 2010) EUR 6,294 million
Net income (FY 2010) EUR 90 million
Number of employees 7,500 (December 2010)
Headquarters London
R&D sites Beijing, Lund, Silicon Valley and Tokyo
Market share 11% in Android (FY2011/3Q)
80% of sales are smartphones (Android)
About Sony
Sony Corporation is a leading manufacturer of audio, video, game,
communications, key device and information technology products for the
consumer and professional markets. With its music, pictures, computer
entertainment and online businesses, Sony is uniquely positioned to be the
leading electronics and entertainment company in the world. Sony recorded
consolidated annual sales of approximately $87 billion for the fiscal year
ended March 31, 2011.
Sony Global Web Site: http://www.sony.net/ [http://www.sony.net ]
About Ericsson
Ericsson is the world's leading provider of technology and services to
telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile
technologies, and provides support for networks with over 2 billion
subscribers and has the leading position in managed services. The company's
portfolio comprises mobile and fixed network infrastructure, telecom
services, software, broadband and multimedia solutions for operators,
enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint
ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an
all-communicating world" through innovation, technology, and sustainable
business solutions. Working in 180 countries, more than 90,000 employees
generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded
in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on
NASDAQ OMX, Stockholm and NASDAQ New York.
http://www.ericsson.com
Source: Sony Corporation
Inquiries: Corporate Communications, Sony Corporation, Tel: +81-(0)3-6748-2200, Corporate Communications, Sony Europe, Sally Osman: +44(0)7803078945 or +44(0)1932-816828
Sony to Acquire Ericsson's Share of Sony Ericsson
LONDON, October 27, 2011/PRNewswire/ --
- Sony Ericsson to become a wholly-owned subsidiary of Sony
and integrated intoSony's broad platform of network-connected consumer
electronics products
- The transaction also providesSonywith a broad IP cross-licensing
agreement and ownership of five essential patent families
- Ericsson to receive EUR 1.05 billion cash payment
- Sony and Ericsson to create wireless connectivity initiative to
drive connectivity across multiple platforms
Sony Corporation ("Sony") and Telefonaktiebolaget LM Ericsson
("Ericsson") today announced that Sony will acquire Ericsson's 50 percent
stake in Sony Ericsson Mobile Communications AB ("Sony Ericsson"), making
the mobile handset business a wholly-owned subsidiary of Sony.
The transaction gives Sony an opportunity to rapidly integrate
smartphones into its broad array of network-connected consumer electronics
devices - including tablets, televisions and personal computers - for the
benefit of consumers and the growth of its business. The transaction also
provides Sony with a broad intellectual property (IP) cross-licensing
agreement covering all products and services of Sony as well as ownership of
five essential patent families relating to wireless handset technology.
As part of the transaction, Ericsson will receive a cash consideration
of EUR 1.05 billion.
During the past ten years the mobile market has shifted focus from
simple mobile phones to rich smartphones that include access to internet
services and content. The transaction is a logical strategic step that takes
into account the nature of this evolution and its impact on the marketplace.
This means that the synergies for Ericsson in having both a world
leading technology and telecoms services portfolio and a handset operation
are decreasing. Today Ericsson's focus is on the global wireless market as a
whole; how wireless connectivity can benefit people, business and society
beyond just phones. Consistent with that mission, by setting up a wireless
connectivity initiative, Ericsson and Sony will work to drive and develop
the market's adoption of connectivity across multiple platforms.
"This acquisition makes sense for Sony and Ericsson, and it will make
the difference for consumers, who want to connect with content wherever they
are, whenever they want. With a vibrant smartphone business and by gaining
access to important strategic IP, notably a broad cross-license agreement,
our four-screen strategy is in place. 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. This includes Sony's own acclaimed network services, like the
PlayStation Network and Sony Entertainment Network," said Sir Howard
Stringer, Sony's Chairman, Chief Executive Officer and President. Mr.
Stringer also noted that the acquisition will afford Sony operational
efficiencies in engineering, network development and marketing, among other
areas. "We can help people enjoy all our content - from movies to music and
games - through our many devices, in a way no one else can."
"Ten years ago when we formed the joint venture, thereby combining
Sony's consumer products knowledge with Ericsson's telecommunication
technology expertise, it was a perfect match to drive the development of
feature phones. Today we take an equally logical step as Sony acquires our
stake in Sony Ericsson and makes it a part of its broad range of consumer
devices. We will now enhance our focus on enabling connectivity for all
devices, using our R&D and industry leading patent portfolio to realize a
truly connected world," said Hans Vestberg, President and CEO of Ericsson.
When Sony Ericsson started its operations on October 1, 2001, it
combined the unprofitable handset operations from Ericsson and Sony.
Following a successful turnaround the company has become a market leader in
the development of feature phones by integrating Sony's strong consumer
products knowledge and Ericsson's telecommunications technology leadership.
The WalkmanTM phone and Cyber-shotTM phone are well known examples.
With the successful introduction of the P1 in 2007, Sony Ericsson early
on established itself in the smartphone segment. More recently, the company
has successfully made the transition from feature phones to Android-based
Xperia(TM) smartphones. By the end of the third quarter of 2011, Sony
Ericsson held a market share of 11 percent (by value) in the Android phone
market, representing 80 percent of the company's third quarter sales. During
its ten years in operation Sony Ericsson has generated approximately EUR 1.5
billion of profit and paid dividends totaling approximately EUR 1.9 billion
to its parent companies. Prominent models include "XperiaTM arc" and
"XperiaTM mini" which received 2011 EISA Awards, while recent notable
additions to the lineup include "XperiaTM PLAY" and "XperiaTM arc S".
The transaction, which has been approved by appropriate decision-making
bodies of both companies, is expected to close in January 2012, subject to
customary closing conditions, including regulatory approvals.
As a result of obtaining full control of Sony Ericsson, Sony will
consolidate Sony Ericsson from the closing date of the acquisition. The
resulting impact of the acquisition to Sony's consolidated results for the
fiscal year ending on March 31, 2012 is currently being evaluated.
Facts about Sony Ericsson
Sales (FY 2010) EUR 6,294 million
Net income (FY 2010) EUR 90 million
Number of employees 7,500 (December 2010)
Headquarters London
R&D sites Beijing, Lund, Silicon Valley and Tokyo
Market share 11% in Android (FY2011/3Q)
80% of sales are smartphones (Android)
About Sony
Sony Corporation is a leading manufacturer of audio, video, game,
communications, key device and information technology products for the
consumer and professional markets. With its music, pictures, computer
entertainment and online businesses, Sony is uniquely positioned to be the
leading electronics and entertainment company in the world. Sony recorded
consolidated annual sales of approximately $87 billion for the fiscal year
ended March 31, 2011.
Sony Global Web Site: http://www.sony.net/ [http://www.sony.net ]
About Ericsson
Ericsson is the world's leading provider of technology and services to
telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile
technologies, and provides support for networks with over 2 billion
subscribers and has the leading position in managed services. The company's
portfolio comprises mobile and fixed network infrastructure, telecom
services, software, broadband and multimedia solutions for operators,
enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint
ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an
all-communicating world" through innovation, technology, and sustainable
business solutions. Working in 180 countries, more than 90,000 employees
generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded
in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on
NASDAQ OMX, Stockholm and NASDAQ New York.
http://www.ericsson.com
Source: Sony Corporation
Inquiries: Corporate Communications, Sony Corporation, Tel: +81-(0)3-6748-2200, Corporate Communications, Sony Europe, Sally Osman: +44(0)7803078945 or +44(0)1932-816828