Ericsson and Sony Corporation announced they would create a new jointly-owned company called Sony Ericsson Mobile Communications to combine their mobile phone businesses. The new company would leverage Ericsson's expertise in telecommunications and Sony's expertise in consumer electronics to become a world leader in mobile phones, especially as the industry transitions to 3G and mobile internet capabilities. Both companies believed their partnership was ideal to capitalize on the growing market for mobile phones that can handle multimedia content on broadband networks.