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Sony Ericsson may acquire Spice
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According to the Economic Times, Sony Ericsson is considering acquiring Spice, the handset division of BK Modi Group. BK Modi owns 64 percent of Spice and has asked for 80-100 rupees per share, which would value the company at up to $174 million. The deal has not been finalized, however should it come to fruition, it would make Sony Ericsson the second largest handset maker in India.
Sony Ericsson is well known for its Walkman-branded phones and in first quarter 2008 it shipped 22.3 million handsets, a 2 percent increase year over year. However, in June the company issued a warning to investors that its second-quarter sales and net income will take a hit because of slowing demand for its mobile phones and new product shipping delays. The handset maker estimated it would just break even in the second quarter.
For more:
- see this article
Related articles:
Sony Ericsson issues profit warning
Sony Ericsson ships 22.3M phones in 1Q
Comments
Posted by Anonymous | July 14, 2008 - 12:43pm
The referenced article states that Sony Ericsson is considering acquiring not merging. It also states that the combined company would be the 2nd largest mobile phone company in INDIA. Fierce Wireless's story is a bit misleading to say the least.
Posted by Sue Marek | July 14, 2008 - 1:02pm
You are correct. The article is misleading. I will correct it.
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