Sony is the Japan’s largest exporter of consumer electronics. They fell after a newspaper reported the company was close to an agreement to buy Ericsson AB’s stake in their mobile phone venture.
HELSINKI/TOKYO – Sony Corp is in talks to buy out Ericsson from their mobile phone joint venture in a bid to catch up with rivals, a source with direct knowledge of the matter told Reuters.
Sony Ericsson’s stake is estimated between $1.3 billion to $1.7 billion by analysts. The shares dropped 3.7 percent to close at 1,415 yen, the second-biggest decliner in Japan’s benchmark Nikkei 225 Stock Average, which gained 1 percent. Ericsson fell 1 percent to 68.50 kronor at 5:04 p.m. in Stockholm. You can see in the graph at the bottom of the review , Sony Ericsson’s market share has been declining rapidly in recent years.
Sony Ericsson is currently the sixth largest mobile phone maker company in the world. The Wall Street Journal said in a report on Thursday the talks between the two companies were ongoing and could break up at any time, citing people familiar with the matter.
Apple Inc and Samsung Electronics they are following disjointed strategy regarding mobile gadgets and online content. So It could be helpfull for Sony to recoup ground in the battle against Apple Inc and Samsung Electronics.
“Up to now Sony’s products and network services have all been separate. Unifying them would be positive. If they can leverage their games and other network services I think they can lift their share,” Izumi said.