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Sony and Ericsson to Split?
Techtree News Staff, Mar 20, 2009 0830 hrs ISTSources say Ericsson interested in selling its stake in the JV
German magazine Manager-Magazin.de reports that leading telecommunications major Ericsson is inching towards letting go off its 50 percent stake in the Sony Ericsson joint-venture that has created the Sony Ericsson brand.
As a prelude to a possible buyout, Sony is being rumored to be in talks with some banks to finance the deal. There has been no comment from Sony or Ericsson regarding this. However, some sources say that Ericsson was interested in selling its stake in the JV owing to continuous financial implications.
Ericsson joined hands with Sony back in 2001 to create Sony Ericsson, which tasted great success until late 2006, after which it has been making losses consistently. Analysts point out various reasons for the decline. The JV was responsible for launching some classic phone models that include the likes of the T68i, P800, P900 and not to mention the Walkman and the Cybershot series of Music and Camera oriented phones. In fact, Sony had pioneered the concept of the "Music Phone" when it launched the W800 a few years ago.
The company also went on to become one of the top five mobile phones manufacturers in the world. However, the association seems shaky at the moment owing to various reasons. The current financial crisis and Ericsson's continuous losses has only aggravated the problem further. Ericsson recently posted a Q4 2008 loss of EUR187 million.
The relieving factor is that all this is pure speculation right now, so Sony Ericsson fans need not worry, at least for now.
As a prelude to a possible buyout, Sony is being rumored to be in talks with some banks to finance the deal. There has been no comment from Sony or Ericsson regarding this. However, some sources say that Ericsson was interested in selling its stake in the JV owing to continuous financial implications.
Ericsson joined hands with Sony back in 2001 to create Sony Ericsson, which tasted great success until late 2006, after which it has been making losses consistently. Analysts point out various reasons for the decline. The JV was responsible for launching some classic phone models that include the likes of the T68i, P800, P900 and not to mention the Walkman and the Cybershot series of Music and Camera oriented phones. In fact, Sony had pioneered the concept of the "Music Phone" when it launched the W800 a few years ago.
The company also went on to become one of the top five mobile phones manufacturers in the world. However, the association seems shaky at the moment owing to various reasons. The current financial crisis and Ericsson's continuous losses has only aggravated the problem further. Ericsson recently posted a Q4 2008 loss of EUR187 million.
The relieving factor is that all this is pure speculation right now, so Sony Ericsson fans need not worry, at least for now.
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Kidrock
,mumbai, on Mar 20, 2009 11:43 AM
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