Sony purchased Ericsson’s 50% share of Sony Ericsson for $146 billion today, ending the ten-year mega partnership. Sony Ericsson will now be a wholly owned subsidiary of Sony. Sony’s motivation is, under its control, the smartphone will be more competitive than it is under the joint effort.
Ericsson is free to concentrate on wireless equipment and connectivity where it’s particularly strong, and not dilute its efforts in the dog-eat-dog smartphone arena.
The ten-year joint effort, assembled to take advantage of Ericsson’s telecom and Sony’s consumer electronics experience, now accounts for approximately 11% of Android smartphones. The ink should be dry on the deal in January 2012.
Back to the price – really, doesn’t this seem somewhat low?