Ericsson To Pull Out Of JV With Sony?


There are some reports doing the rounds that Ericsson (NSDQ: ERIC) would like to leave the joint venture it has with Sony (NYSE: SNE) — Sony Ericsson — and Sony is interested in buying out the 50 percent of the company it does not own reports TelecomAsia. Sony Ericsson hasn’t been doing too well lately; its fourth quarter sales last year fell 21 percent, and it posted a $245 million loss for the quarter. Apparently the two companies have been in disagreements over the design of the phones, and the possibility of a PlayStation handset. However, the current economic situation is not the best time to be wheeling and dealing — Sony is reportedly talking to banks to borrow the funds to buy out Ericsson but recently posted its first loss in 14 years, which may hamper it. Likewise, Ericsson may not see any profit on the deal, and could even lose money.

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