We all know that Sony and Ericsson have had a long relationship. Once that has benefited both companies and one of the most recent examples of the flourishing relationship is the Xperia Play the first PlayStation branded phone. With Sony announcing PlayStation Suit and a move into the tablet industry with a further push into the cell phone industry. It makes sense that Sony would want to aquire Ericsson.
Ericsson is the worlds largest mobile telecommunications equipment vendor with an over all market share of around 35%. Ericsson created Blue Tooth as well (Which I didn't know until I looked into it right now). Ericsson has a ton to offer Sony, the Wall Street Journal also reports that Ericsson had in fact wanted to make a PlayStation cell phone for tons of years prior to the release of Xperia Play, however according to the WSJ source Sony dragged its feet, not wanting to entrust its valuable PlayStation brand with another company. Understandably Sony wanted to ensure the PS brand remained internally controlled.
However it would appear that Sony is now realizing that Ericsson is very valuable and would make a very good investment. Rumor is Sony is apparently going to pay between $1.3 and $1.7 billion for Ericsson. They plan to integrate Ericsson's products and services into all the major PlayStation branded products including Vita, PC and Tablet businesses as well as apparently seek out further investment in cell phones.
What do you think is the rumored Sony acquisition of Ericsson a smart move? Are they worth 1.7 billion? What are the pros and cons for Sony and Ericsson going into this buyout? Is this good for us the Sony consumers?
-JC7
"In God We Trust - In Games We Play " - Joel Reimer