Sony Close to Buying Ericsson Stake in Smartphone Venture: Reports

Sony Corp. is reportedly close to reaching a deal to buy Telefon AB LM Ericsson’s (News - Alert) stake in their 50-50 smartphone joint venture, according to media reports.

Citing “people familiar with the matter,” the Wall Street Journal reported on Thursday that Sony and Ericsson have been “talking for weeks” about the future of the venture because the companies’ 10-year-old pact is up for renewal this month, two industry sources told Reuters. The joint venture formed in 2001.

“By wresting full control of Sony Ericsson (News - Alert), a 50-50 joint venture created in 2001 that is the world's sixth-largest cellphone manufacturer, Sony aims to integrate its smartphone operation with its businesses in tablets, hand-held game machines, and personal computers to save on costs and better synchronize development of mobile devices,” the Journal reported.

The Wall Street Journal said the talks were ongoing and could cease at any time.

It remains unclear how much Sony would pay Ericsson “because of the complexity of a possible transaction that could involve Ericsson’s mobile-technology patent portfolio,” the Journal said.

Both Ericsson and Sony declined to comment on the reported talks, Reuters (News - Alert) said. “We have a long-term commitment to our joint ventures,” an Ericsson spokesman told Reuters.

The deal would be the latest transaction to stir up the smartphone industry.  In August, TMCnet reported that Google Inc. acquired Motorola (News - Alert) Mobility Holding Inc.’s cellphone business for $12.5 billion.

In other Sony Ericsson news, TMCnet reported that the U.K.-based company is likely not going to get involved in legal disputes over patents that involve its competitors, according to its CEO. Dow Jones reported that Sony Ericsson has a “large existing patent portfolio” and cross-licenses the patents, says CEO Bert Nordberg (News - Alert).

Sony Ericsson’s Q3 2011 financial results will be announced on Oct. 14 at 7:30 a.m. U.K. time, 8:30 a.m. CT.