November 23, 2014

Sony Mulls Buying Out Ericsson to Gain Full Control on Mobile Front

Sony Ericsson, the joint mobile venture formed between Sony Corp. and Telefon AB L.M. back in 2001 may be nearing its final days. No, not because of lagging phone sales or a lack of direction. Instead, the word on the streets is that Sony wants to buy out the other half in an effort to gain total control on the mobile strategies.

Ask around and you’ll find that most people don’t know that Sony Ericsson is a separate entity from Sony. Many consumers are left left confused when they see the branding on handsets and smartphone, especially in the wake of the Xperia PLAY. Not only would this buyout clear things on the consumer front, but it will likely lessen boardroom burdens as well. It’s one thing to have two sets of eyeballs looking at every move, it’s another thing to have one two entities working on an initiative that doesn’t line up completely with other projects.

Given this type of rumor has been around multiple times before we can’t help but reach for some salt. On the other hand, looking at where Sony is headed with tablets, TV’s, and services, we somehow feel this deal might get worked out this time around.

Where do you think Sony Ericsson might with their Android phones if there were not companies involved in planning and strategies?

Via: WSJ (subscription)