Sony considering buyout of Sony Ericsson - Report

In wake of smartphone gaming growth, Wall Street Journal says Sony wants to make handset and tablet business internal.

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Sony is looking to buy Telephon AB L.M. Ericsson's 50 percent share of the Sony Ericsson joint venture, according to a Wall Street Journal report. This move would allow Sony to consolidate product lines and bring the handset and tablet divisions under one roof. Recent collaborations between Sony proper and Sony Ericsson have resulted in the gaming-focused Xperia Play.

The Xperia Play was one of Sony Ericsson's gaming focused phone.

According to the paper's sources, the move would let Sony cut costs and streamline mobile development by putting its smartphone and tablet/gaming businesses under one roof.

The Sony Ericsson joint venture dates back to 2001, with the first products launching in 2002. Feature phones were a company strength, but in the current market, even Sony's CEO, Howard Stringer, is unsure the venture still makes sense, saying earlier this year, "We talk a lot about this, and we continue to talk."

Buying out Ericsson would not be Sony's first step toward integrating the phone business with its existing brands. The electronics giant recently introduced the PlayStation line to the mobile space with initiatives like the PlayStation Suite and PlayStation Certified program.

Sony's stock price has taken a hit on the news with nearly a 4 percent drop from $19.12 at the end of trading on Thursday to $18.41 as of press time.

Discussion

52 comments
Victorious_Fize
Victorious_Fize

Well, if Sony wants to be more involved in the product, then good for them and I endorse! I just payed for SEX PLAY the other day and it's awesome! :)

leeko_link
leeko_link

Sad, if this buyout is true, I wish those employees either of Sony or Sony Ericsson the very best cuz usually a buyout means more layoff.

godzillavskong
godzillavskong

@Daian Ok, when did I say they were a Sony model?? It states in the article that they are two companies working together, with Sony possibly buying out Ericsson.

otanikun
otanikun

[This message was deleted at the request of the original poster]

otanikun
otanikun

Would make more sense for them to do that, follow the Apple example. There's no doubt that I'd love to see more Sony gaming tablets, I would just enjoy the different form factor and other features that are otherwise excluded from a handheld device like the PSP or upcoming Vita.

Joedgabe
Joedgabe

I must live under a rock for I never realized they existed nor seen these phones before ._.

warhawk-geeby
warhawk-geeby

@Monopoman Congrats for using Wikipedia! You my friend can have a gold star.

slippship
slippship

I got one and it's topline!! Android os makes the iPhone look dated, to me peeps, and the functionality of the games is great. Just a shame the PS1 lineup is soooooooooooooooooooo weak at the moment, only have Crash that came with it. That said the store proper isn't due til the end of the year. The C64 emu however works a treat and I play Powerdrift and salamander all the time! And all the android games that have been 'optimised' work really well too. If you want a phone that isn't just touch screen for games then this is it.

mtait01
mtait01

how did this phone do? I haven't seen anyone with it

Daian
Daian

@wookie560 @godzillavskong These are 2 different companies working together not a Sony model brand.

Jedilink109
Jedilink109

How the frak does Sony NOT have 100% control of a company called SONY Ericsson? Seriously? I really thought they already did...

AvnKnight
AvnKnight

was gonna get one of these still might. Not sure though after seeing this news.

beanofengland
beanofengland

This buyout can't happen soon enough, I bought my xperia play with pretty much the sole intention of being able to play PSOne classics, the 8 or so crap games that have been availble since April do not really interest me. Only bought Wipeout and its hardly the best version of the game... Give me access to all the classics on PSN already!!

godzillavskong
godzillavskong

Just not sure Sony's phones have ever really taken off, or grabbed a nice chunk of the market share. LG and Samsung however are much bigger players in that arena. Sony is still one of my favorites when it comes to tvs though.

Granpire
Granpire

I wonder if this could be a negative thing? I'm not trying to be negative, but when has a takeover by a large company ever been a good thing for consumers? I'm sure you could name a few, but I'm sure you see my point.

godzillavskong
godzillavskong

In other news, Honda looking to buyout Honda Civic. lol

Karrde13
Karrde13

@smoke_dog_4ever They do own it. 50% of it. The other 50% is owned by Ericsson. A swedish Telecommunications company.

wookie560
wookie560

@smoke_dog_4ever Sony have franchises eg. Sony, Sony Erricson, Sony Computer Entertainment

pszone
pszone

Great move Sony this company takeing this chance even rescission everywhere

karaschee
karaschee

I am focusing the vita recently.Don't disappoint me.

EPaul
EPaul

Good idea they are getting left behind by samsung and Apple in the smartphone race

smoke_dog_4ever
smoke_dog_4ever

Food for thought... but how does a product have Sony in the title and NOT be owned by Sony?

LustForSoul
LustForSoul

@NodakJo2010 Yeah, I've got FPSE on my play too, it's great!

NodakJo2010
NodakJo2010

I don't really have time for hardcore uncharted type gaming so I got the Xperia Play...it does fill me with a healthy dose of pretty good gaming on the phone...and I love mapping those buttons to other programs such as fpse ; )

X-RS
X-RS

If you can give me a proper Vita/cellphone I'm down for it =D

ItchyIsVegeta
ItchyIsVegeta

I LOVE my Xperia Play. Would love to see more titles for it come out.

Hatemachine25
Hatemachine25

Iphone is pretty much synonymous with Smartphone based gaming, as well as the Android's, sony established itself as a company that produces consumer electronics AND games, but not Smartphones with gaming capabilities. In THAT particular field they are as yet unknown, all the more power to them if they succeed, I would consider one in seconds with a viable backlog of PS1 titles and a reliable carrier. But as is they haven't even gotten their feet wet and it's a very fickle market I hold no illusion about their chances with this.

Rando1017
Rando1017

@Hatemachine25 Larger more established companies? We're talking about Sony here. Who are you taking about??

Hatemachine25
Hatemachine25

Gimmie games on these things worth playing and maybe i'll care, seriously these things won't be worth spit compared to larger more established companies product lines unless they bring thing's to it that make it functional, worthwhile and unique.

Ice_man_1985
Ice_man_1985

so they are both on different division? are u kidding me, so all along sony didn't have control over ericsson phones, then why the hell does it called sony ericsson? this is totally confusing, let get this straight, ericsson has 50 percent shares and sony has the other half right? and now they want to buy the whole share to control and produce their own phones? sony has 50 percent share and the only thing they can control by this 50 is printing their name with ericsson's phones?

blackace
blackace

Don't really care about Sony's Ericsson line of phones. I already own a cell phone and if I get the PSVita within the next 2 years, that's all I'll need to play Sony's games on the go. I don't care to much for playing games on a phone.

SDBusDriver1979
SDBusDriver1979

"Sony considering buyout of Sony Ericsson" Sony is buying themselves out?

BaronSector
BaronSector

Sony Ericsson isnt part of Sony? Did not know that.

Slash_out
Slash_out

I'm thinking of getting the latest Xperia Arc S, I heard only good thing about the Xperia arc. So I guess they are doing good.

NaryuKick
NaryuKick

@Evenios - Sony owns 50% of the company. That's why the article stated that Sony showed interest in purchasing the other 50%, and take full control of the company.

Megavideogamer
Megavideogamer

The Sony Ericsson Xperia play is a success then? Must be if Sony wants to buy out the Erisson half. I've very surprised. Xperia play was late to the market regarding smartphones. If I were Sony I wouldn't do it. The Smartphone market is way to unstable. Sony would be wise to continue the partnership. Xperia play is just a smartphone with Playstation buttons/controls. When apple releases the iPhone 5 Sony will have to counter. So it is best to share the burdun with Ericsson. Sony should spread itself to thin.

MarcJL31
MarcJL31

Good move for Sony. Needs to take full control of it.

Son_of_Bmore
Son_of_Bmore

So cutting cost should mean cheaper phone right........then I'm all 4 it

Evenios
Evenios

dont they own the company? thats confusing?

dark_princess29
dark_princess29

about time xbox stoped stealing all the big things im glad sony are getting here 1st i love my ps3 free online is awsome :) i wouldnt waste 40pound a year on online when its free good on you sony

timmy0001
timmy0001

I love Sony Ericsson phones. I've owned the t226, t616, t637, w810i, k550i and i'm currently using the j108 (which is the first one that isn't very good). I wish they still made regular candybar style phones and didn't make so many smartphones. I prefer the candybar phone/ tablet combo over a smartphone only.

jcbullen
jcbullen

My first cell phone was a Sony Ericsson, good little thing. I dropped it in my friend's driveway and it got run over and sat in the rain for a couple days. Worked just fine afterwards, minus the mostly cracked screen.

kmarrelly
kmarrelly

[This message was deleted at the request of the original poster]

Gmythe
Gmythe

This might mean we can have PSN on future Sony phones and maybe on the Xperia too. That would be great.