Sony Ericsson’s $1.47 Billion Buyout Deal Approved By The EU
At last Sony acquires the Ericsson for $1.47 billion for the ownership of the Sony Ericsson joint smartphone venture which is now officially approved by the European Union (EU).
Actually this deal was announced by Sony in Ocober 2011, but it took almost three months to be meterialized and now on 26th of January it got approval by the EU to go on.
This deal gives Sony full grip in controlling the phone division and also it will get the full advantage by the patents those come along with this deal. Now Sony Ericsson will not be appear on the new devices as Sony is going to release them under it’s own brand. In fact, when the approval of the buyout was still under the process, Sony launched two smartphones, the Xperia S and the Xperia Ion under the ‘Sony’ brand.
The Ericsson’s buyout by the Sony gives the takeover company some challenges. In the 4th quarter of their earnings report, Sony Ericsson had shown up 247 million Euros loss. Now it is a big task for the Sony to patch-up the losses and throw the company in to a mine of profits. Let us hope Sony can pull the trigger. good luck to Sony!