Sony Ericsson split complete : Sony Mobile Communication is the new name
The big split is finally, final. Sony and Ericsson have finally spilt up, to name the new company Sony Mobile Communications. Sony has finally taken over Telefonaktiebolaget LM Ericsson’s 50-percent stake in the pair’s former joint venture, reported to have cost €1.05 billion ($1.37 billion). The reports of this split started to appear in the last months of 2011.
PRESS RELESE :
Ericsson’s gain on the transaction will be approximately SEK 7.5 billion and reported as ‘Other operating income’
Ericsson (NASDAQ:ERIC) has today completed the divestment of its 50 percent stake in Sony Ericsson Mobile Communications AB (“Sony Ericsson”), including the broad IP cross-licensing agreement, jointly announced by Sony Corporation (“Sony”) and Ericsson on October 27, 2011. This makes Sony Ericsson a wholly-owned subsidiary of Sony. The agreed cash consideration for the transaction is EUR 1.05 billion.
Ericsson’s gain on the transaction will be approximately SEK 7.5 billion and will be reported in the first quarter result on April 25, 2012, as ‘Other operating income’ in the income statement.