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Example of Joint Venture

A joint venture is a business arrangement in which a two or more business groups agree to develop a new corporate identity and assets by contributing equity to the venture. Both parties hold control over the enterprise, sharing all profits, losses, expenses and assets. Often times a separate corporation, limited liability or other partnership is created. Otherwise the separate companies maintain their separate identities and function under a joint venture agreement. Regardless of method, all parties in the joint venture share all management details, profits, and losses according to the terms of their joint venture contract.

Examples of Joint Ventures:

One of the more well known joint ventures is Cingular Wireless, a cell phone company. Cingular is a joint venture between SBC and Bellsouth. (Cingular is now AT&T Wireless.)
Sony-Ericsson is a joint venture between the Japanese owned electronics company Sony and the Swedish based telecommunications company Ericsson that makes mobile phones. Each company agreed to stop making their own separate brand of phone in order to combine Sony's electronics knowledge with Ericsson's technological advances in communications to produce a better quality of phone jointly.

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