Sony to Acquire Ericsson’s Share of Mobile-Phone Venture for $1.5 Billion

Sony Corp. agreed to buy Ericsson AB’s 50 percent stake in their 10-year-old mobile-phone venture to integrate the smartphone business with its gaming and tablet offerings.

Ericsson will get 1.05 billion euros in cash for its shares in Sony Ericsson Mobile communications AB, the Stockholm-based company said today. The proceeds from the deal are higher than the book value of Ericsson’s stake.

The deal will help Sony tap demand for smartphones as Japan’s largest exporter of consumer electronics is seeking a new earnings driver after losing a total of $6.3 billion from its main television operation in the past seven fiscal years.

“The deal will increase management freedom at the mobile phone unit to speed up development of new products,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo, which manages about $28 billion in assets. “It’s up to products whether Sony can survive in the wireless industry.”