Sony Ericsson sells half of UIQ to Motorola

By John Bowker

LONDON (Reuters) - Mobile phone maker Sony Ericsson (6758.T: Quote, Profile, Research, Stock Buzz) (ERICb.ST: Quote, Profile, Research, Stock Buzz) is selling half of its smartphone software unit UIQ to U.S. rival Motorola (MOT.N: Quote, Profile, Research, Stock Buzz), Sony Ericsson's president, Miles Flint, told reporters in London on Monday.

The Swedish-Japanese handset maker acquired UIQ from British mobile software maker Symbian last year for an undisclosed sum, and would not comment on the price of the latest deal.

Speaking to Reuters after the news conference, Flint said UIQ -- which has a long-term goal to take the market top spot from Nokia's (NOK1V.HE: Quote, Profile, Research, Stock Buzz) S60 -- would be operated as an independent entity.

"It's not a merger, it's not a joint venture. We are creating a platform which can be shared by a number of operators," Flint said, adding the next stage would be to bring in a third member, although he would not put a timeframe on the search process.

"The intention is to bring in more over time," he said.

To illustrate investment put into UIQ since it changed owners, Sony Ericsson said it had trebled its headcount to 350.

But Flint said that despite the extra investment the firm had yet to increase its percentage market share from single digits.

"It would be unrealistic to expect a massive change yet," Flint said.