Electronics giant Sony has spent £960 million to acquire a 50 per cent stake in Swedish telecoms group Sony Ericsson.
The buyout gives Sony a controlling stake in the mobile phones group, as the PlayStation business itself makes new tentative steps into smartphone and tablet games.
"This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want," said Sony’s chairman Sir Howard Stringer.
Sony shares jumped 5.4 per cent yesterday in Japan ahead of the announcement.
Sony Ericson has more recently focused on its Xperia Play smartphone – an Android device that resembles PSPgo and can play various PlayStation games. The device accounted for 80 per cent of Sony Ericsson sales last quarter, the company said.
Sony wants to expand its games business further across smartphones. The company will next month launch PlayStation Suite – a development framework that allows content creators to ship games to PS Vita, Xperia Play and Sony tablets.