Sony Corporation has acquired Ericsson’s stake in mobile joint venture Sony Ericsson for $1.47 billion. The deal will result in Ericsson’s 50% stake in the company now coming under Sony’s full control.

As part of the deal, Sony has bought out Ericsson’s ownership of  “five essential patent families” in an intellectual property agreement between the two companies. As part of the transaction, Ericsson will receive a €1.05 billion cash payment from Sony. That values the deal at $1.47 billion at current market prices.

The acquisition will give Sony the opportunity to incorporate mobile products into their other electronic offerings such as TVs, laptops, mobile phones and tablets which will enhance its ‘four-screen strategy.’ It will also allow Ericsson, once a strong contender in the mobile phone sector, to concentrate on its network gear business.

CEO of Sony, Sir Howard Stringer, has said in a statement: “This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want.”

source: mashable