Sony buys Ericsson out of Android smartphone partnership

Sony is buying out Ericsson's share of the pair's joint mobile phone venture, Sony Ericsson, they announced this morning.

The move puts a "four screen strategy" in place for Sony, which believes that having full control of the phone business will enable it to more quickly offer consumers smartphones, laptops, tablets and televisions that more easily connect with its entertainment services, such as its PlayStation Network and Sony Entertainment Network.

Ericsson will receive 1.05 billion euro in cash, or nearly $1.5 billion U.S.

Sony, in addition to the headache of full responsibility for competing in a highly competitive smartphone market, will assume ownership of "five essential patent families relating to wireless handset technology," it said in a statement — no small potatoes when all of the industry's lead manufacturers are currently embroiled in patent-related lawsuits.

During the second quarter of 2011, according to data from Gartner, Sony Ericsson handsets accounted for 1.7% of the mobile device market, down from 3% a year earlier. The pair point out, however, that the brand has transitioned from feature phones to Android-running Xperia smartphones, and that by the end of the third quarter it held 11% of the Android phone market.

Stockholm-based Ericsson, apparently not without key patents of its own, plans to put its full energies into the broader wireless market.

"Ten years ago when we formed the joint venture ... it was a perfect match to drive the development of feature phones," Ericsson CEO Hans Vestberg said in a statement. "Today we take an equally logical step ... We will now enhance our focus on enabling connectivity for all devices, using our R&D and industry-leading patent portfolio to realize a truly connected world."