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Sony Ericsson asks parents for handout

Sony Ericsson
Hello Mum, Dad - um, would another billion euros be out of the question?

In spite of long-running rumours of its demise and huge recent losses, mobile phone maker Sony Ericsson could be in line for a massive cash injection from its two parent companies.

A report in the Financial Times suggests that each of Ericsson and Sony will hand the joint venture €500 million (£446 million) in cash to shore up its bottom line.

Loan or handout?

And, like any financially challenged offspring, it's unclear whether or not Sony Ericsson will ever have to pay the money back to its parents.

The phone company lost $387 million (£257 million) on the back of a handset sales decline of 35 per cent in the first quarter of 2009 and has long been the subject of rumours saying one of the parent companies will buy the other out.

Job losses

On top of the losses, the company is also working on shedding 2,000 jobs from its global workforce.

As for the possible buy-out, Ericsson CEO Carl-Henric Svanberg told the FT that Sony was "a logical buyer" but he added that nothing was on the table at present.