Sony, Fujitsu end Internet talks


Sony and Fujitsu have ended talks on Internet cooperation

Staff and wires

TOKYO, Japan -- Japanese consumer electronics giant Sony said Wednesday it has ended talks with computer and chipmaker Fujitsu on possible cooperation in Internet services.

This had been expected to include the purchase of Fujitsu's Internet service provider, Nifty, which is Japan's largest fixed-line ISP.

Shares in Sony finished down almost 1 percent Wednesday at 7210 yen, while Fujitsu closed 2.32 percent lower at 926 yen. The Nikkei 225 average ended the day off 0.7 percent.

There has been an expectation that consolidation of Japanese ISPs will occur soon, leading eventually to a handful of major players.

Executives at Sony have said they want to build the company's So-net ISP into Japan's largest, according to Reuters news agency.

Sony's announcement comes five months after a media report that it was poised to buy Nifty, which is a wholly owned Fujitsu subsidiary.

Sony chairman Nobuyuki Idei complained recently that media reports had hobbled negotiations on cooperation with Fujitsu.