Sony and Ericsson complete joint venture agreement
Tuesday, August 28 2001
Sony Ericsson Mobile Communications set to start operations on October 1
Aiming for the world's leading position in mobile phones
Sony Corporation and Telefonaktiebolaget LM Ericsson today announced that they
have agreed terms to merge their mobile phone businesses worldwide, subject to final
approval of the Boards of the two parent companies and subject to regulatory approvals.
The two companies which signed their Memorandum of Understanding in April are well on schedule and set to establish the joint venture, Sony Ericsson Mobile Communications, as planned on October 1, 2001. The joint venture's global management will be based in London and, after necessary approvals, Sony and Ericsson will start to merge their respective operations.
Sony Ericsson Mobile Communications will begin its activity with global product, marketing and sales operations and an initial workforce of 3,500 employees. On a pro-forma basis, the combined mobile phone businesses achieved annual unit sales of approximately 50 million units and sales of USD 7.2 billion last year.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
About Sony Corporation
Sony Corporation is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be a leading personal broadband entertainment company in the world. Sony recorded consolidated annual sales of nearly US$ 60 billion for the fiscal year ended March 31, 2001.
Sony's Home Page URL: www.world.sony.com