Sony to buy out Ericsson?

News about Sony Corp. and Ericsson splitting up is not new. In fact, it has been going around for years. But this time, this may be really it. Sony is rumored to buy Ericsson's 50 percent stake from their joint venture that could cost between $1.3 and $1.7 billion.

According to reports, Sony wants to gain control of Sony Ericsson and integrate it with its tablets and gaming consoles, based on a report. It added that this would allow Sony to save costs and to improve its mobile device development. Moreover, this could be seen as a strategic move to prime the company against Apple and Samsung.

Sony Ericsson posted a net profit of $120.1 million in 2010 after quarters of losses. The company, which has undertaken a transition to smartphones by relying on Google's Android OS, has watched its market share shrink from 4.3 percent in 3Q09 to 1.7 percent in 2Q11, according to research firm Gartner.

There have also been recent indications that Sony Ericsson is moving toward a product alignment with Sony. The handset maker's Xperia Play Android phone is essentially a mobile Sony PlayStation device married to a phone, and has access to Sony's video game library. Additionally, Sony Ericsson's flagship Android phones, including the Xperia Arc, connect to Sony TVs through DLNA technology.

Representatives from Sony, Ericsson and Sony Ericsson refused to comment on the matter.