Sony Ericsson becomes wholly-owned subsidiary of Sony
Key negotiations have been completed and have opened up the way for Sony to take complete control of Sony Ericsson.
The completion of business negotiations will see Sony buy out Ericsson's share in their Sony Ericsson venture.
As a result of the deal, the organisation will now become a wholly-owned subsidiary of Sony, while Ericsson will receive over €1 billion (£869 million).
The thinking behind the arrangement is that Sony - which employs 170,000 people worldwide - is trying to expand its smartphone offerings as it looks to develop a range of network-connected customer electronics devices.
Sir Howard Stringer, chairman of the organisation, stated: "This acquisition makes sense for Sony and Ericsson and it will make the difference for consumers."
He added customers will now be able to get smartphones, laptops, tablets and televisions that can connect with each other "seamlessly".
The Sony Ericsson development has been running for the past ten years and has been very successful during this time, but both parties believe that it makes sense to move forward.
Posted by David Gleck
Source: Sony press release, October 27th