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Sony considering buyout of Sony Ericsson - Report

By Jonathan Downin

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

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.

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.

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Victorious_Fize 25 pts

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 54 pts

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 43 pts

@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 15 pts

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otanikun 15 pts

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 12 pts

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

warhawk-geeby 56 pts

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

slippship 5 pts

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 63 pts

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

Daian 56 pts

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

Jedilink109 15 pts

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

AvnKnight 5 pts

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

beanofengland 12 pts

great phone for emulators though

beanofengland 12 pts

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 43 pts

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 14 pts

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.

Monopoman 5 pts

Funny that people are unable to realize that the company Sony Ericsson is partly owned by two companies. Ericsson is its own company people... http://en.wikipedia.org/wiki/Ericsson

godzillavskong 43 pts

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

Karrde13 5 pts

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

wookie560 21 pts

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

pszone 13 pts

Great move Sony this company takeing this chance even rescission everywhere

karaschee 5 pts

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

EPaul 12 pts

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

smoke_dog_4ever 27 pts

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

LustForSoul 5 pts

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

NodakJo2010 6 pts

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 15 pts

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

ItchyIsVegeta 5 pts

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

Hatemachine25 5 pts

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 5 pts

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

Hatemachine25 5 pts

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 5 pts

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 6 pts

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.

Gelugon_baat 479 pts

Ah ... some people - including me - tend to forget that Sony Ericsson is a joint-venture. :D

SDBusDriver1979 15 pts

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

BaronSector 5 pts

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

Slash_out 18 pts

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 5 pts

@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 52 pts

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 13 pts

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

Son_of_Bmore 5 pts

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

Evenios 20 pts

dont they own the company? thats confusing?

dark_princess29 5 pts

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 30 pts

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 5 pts

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 5 pts

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

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