Sony to Buy Ericsson Out of Joint Venture

Sony today announced that it is going to purchase Ericsson’s share of the two companies’ Sony Ericsson cell phone joint venture for $1.47 billion. Once the purchase is complete, Sony Ericsson will become a wholly-owned subsidiary of Sony, which intends to integrate the handset division into its other consumer electronics products. As part of the deal, Sony gains five essential patent families related to wireless technology, and also struck a cross-licensing agreement with Ericsson concerning other, non-essential patents. The transaction has been approved by the boards of both companies, and is expected to close in January 2012, pending regulatory review. The joint venture originally launched in October 2001.

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