Breaking up is always sad. And this is one breakup that we were fearing; though also hoping against hope that things would somehow patch up. We are talking about the parting of ways of Sony and Ericsson.
We had been hearing rumors of this for quite a while now, but both the companies had vociferously kept denying the same. There had been reports, then, of major financial losses accruing from the crackdown of a PSP phone proposal. However, Richard Dorman, Senior Manager of the company, had claimed that all was well with the partnership and it was as strong as ever.
Today, however, the inevitable has happened, after all. Sony has taken over Telefonaktiebolaget LM Ericsson’s 50 percent stake in their hitherto joint venture.
The move was once reported to have cost Sony a whopping $1.37 billion to close the deal. Now, Sony will also change the totally Sony-owned company name to Sony Mobile Communications. The said transaction, which was announced by both companies, way back in October, 2011, has been completed with effect from February 15, 2012.
The new Sony Mobile Communications will further integrate the mobile phone business within its main parent company, with a view to facilitating and accelerating mutual growth between Sony’s line of network-enabled products, which predominantly includes TVs, smartphones and tablets.