Sony Ericsson May Merge With Spice
- Posted: Wednesday, July 16, 2008
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- Author: pradhana
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- Filed under: Merger and Acquisition, Sony Ericsson
By Sue Marek
According to the Economic Times, Sony Ericsson is considering a merger with 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.
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. [FierceWireless]
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