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Posted Oct 7, 2011
8:28:30 PM
Sony Ericsson Buyout Likely Within Six Months, Says Analysts
Edited by brinkley1988 on Oct 7, 2011 at 8:29:12 PM

Sony Ericsson may fall into the complete hands of Sony within six months, according to analysts as reported by Reuters.

A source close to the deal told Reuters on Friday that Sony was discussing the matter with Ericsson, which is the world’s 9th largest cell phone maker. The Wall Street Journal reported that both companies are in negotiations related to the end of their 10-year agreement, though neither Sony nor Ericsson have revealed the subject of their talks.

Analysts predict that Sony will buy Ericsson’s share of their near decade-old joint venture for $1.5 billion and recapture ground lost by Apple, Inc. and Samsung Electronics, according to the Montreal Gazette. The joint venture only has four percent of the world’s cell phone market.

Reuters reported that Ericsson has been unwilling to exit, citing the need for end-to-end capability. Analysts see it differently.

"Ericsson's contribution to JV's success in the future is minimal since the battlefield has moved from hardware to content and services," said Alexander Peterc, analyst at Exane BNP Paribas, as quoted by Reuters. "We have always advocated a disposal of Sony Ericsson to Sony -- the move makes a lot of sense for both parties."

If the joint venture ends, Sony would be in a better position than its Swedish counterpart because it can easily integrate the smartphones with its other products, including mobile tablets, video game devices and computers.


 

 

Sony Ericsson may fall into the complete hands of Sony within six months, according to analysts as reported by Reuters.

A source close to the deal told Reuters on Friday that Sony was discussing the matter with Ericsson, which is the world’s 9th largest cell phone maker. The Wall Street Journal reported that both companies are in negotiations related to the end of their 10-year agreement, though neither Sony nor Ericsson have revealed the subject of their talks.

Analysts predict that Sony will buy Ericsson’s share of their near decade-old joint venture for $1.5 billion and recapture ground lost by Apple, Inc. and Samsung Electronics, according to the Montreal Gazette. The joint venture only has four percent of the world’s cell phone market.

Reuters reported that Ericsson has been unwilling to exit, citing the need for end-to-end capability. Analysts see it differently.

"Ericsson's contribution to JV's success in the future is minimal since the battlefield has moved from hardware to content and services," said Alexander Peterc, analyst at Exane BNP Paribas, as quoted by Reuters. "We have always advocated a disposal of Sony Ericsson to Sony -- the move makes a lot of sense for both parties."

If the joint venture ends, Sony would be in a better position than its Swedish counterpart because it can easily integrate the smartphones with its other products, including mobile tablets, video game devices and computers.


 

 

Sony Ericsson Buyout Likely Within Six Months, Says Analysts

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Oct 8, 2011 6:22:41 PM
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brinkley1988 wrote:


"Ericsson's contribution to JV's success in the future is minimal since the battlefield has moved from hardware to content and services," ...


If the joint venture ends, Sony would be in a better position than its Swedish counterpart because it can easily integrate the smartphones with its other products, including mobile tablets, video game devices and computers.




I call bravo sierra on it.  Don't see any evidence that Sony has been constrained;  they have issued various devices including game centric phones and touch sensitive devices.   There must be something else they find constraining.

 

Disagree also that Ericsson's contribution will be minimal.  Ericsson's contribution is the radio.  Without a decent radio, the finest gadget purported to be a cell phone would be garbage.  RF prowess is critical and S/E has issued some excellent units.  Of course they have also issued junk.

 

It must be the cut Ericsson gets  of the profit.  Sony wants it all.  No problem with wanting to make all they can but like other companies run by bean counters, the only thing they give a rip about is the bottom line.  So they buy Ericsson and lay off all the RF gurus because they make too much.  Instant profit, but expect sorry radio performance in future offerings.


brinkley1988 wrote:


"Ericsson's contribution to JV's success in the future is minimal since the battlefield has moved from hardware to content and services," ...


If the joint venture ends, Sony would be in a better position than its Swedish counterpart because it can easily integrate the smartphones with its other products, including mobile tablets, video game devices and computers.




I call bravo sierra on it.  Don't see any evidence that Sony has been constrained;  they have issued various devices including game centric phones and touch sensitive devices.   There must be something else they find constraining.

 

Disagree also that Ericsson's contribution will be minimal.  Ericsson's contribution is the radio.  Without a decent radio, the finest gadget purported to be a cell phone would be garbage.  RF prowess is critical and S/E has issued some excellent units.  Of course they have also issued junk.

 

It must be the cut Ericsson gets  of the profit.  Sony wants it all.  No problem with wanting to make all they can but like other companies run by bean counters, the only thing they give a rip about is the bottom line.  So they buy Ericsson and lay off all the RF gurus because they make too much.  Instant profit, but expect sorry radio performance in future offerings.

Re: Sony Ericsson Buyout Likely Within Six Months, Says Analysts

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Jan 4, 2012 1:40:48 AM
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hi thanks for your information

hi thanks for your information

Re: Sony Ericsson Buyout Likely Within Six Months, Says Analysts

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Jan 5, 2012 4:47:54 AM
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Sony did buy out Ericsson's stake,as was reported in all financial and tech support sites for approximately $1.2 billion.
Sony did buy out Ericsson's stake,as was reported in all financial and tech support sites for approximately $1.2 billion.

Re: Sony Ericsson Buyout Likely Within Six Months, Says Analysts

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