Who Owns Ericsson Company?

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Who Owns Ericsson?

Understanding who owns Ericsson is key to grasping its strategic path and corporate governance. As a global leader in telecommunications, its ownership structure reflects its significant role in shaping the future of connectivity.

Founded in 1876 by Lars Magnus Ericsson, the company has evolved from a small workshop into a multinational corporation. Today, Ericsson operates in over 180 countries, employing approximately 94,000 people as of 2024.

Ericsson's ownership is primarily distributed among institutional investors and public shareholders, with a dual-class share system influencing voting rights. This structure is important for understanding the company's decision-making processes and long-term stability, impacting everything from product development, such as the Ericsson BCG Matrix, to its market strategy.

Ericsson's journey began in 1876 when Lars Magnus Ericsson established a modest mechanical engineering workshop in Stockholm. Initially, the company, L.M. Ericsson & Co., was a partnership between Ericsson and his associate, Carl Johan Andersson, who provided initial capital.

Founding Partnership

Lars Magnus Ericsson and Carl Johan Andersson co-founded the company in 1876. Andersson contributed 1,000 Krona to the initial enterprise.

Sole Proprietorship

After a decade of partnership, Lars Magnus Ericsson became the sole owner in 1886. Andersson continued to work for the company as a shop supervisor until 1908.

Company Transformation

In 1896, the company transitioned to a limited liability structure primarily to limit personal liability rather than to raise capital.

Early Vision

Lars Magnus Ericsson's expertise in precision mechanics and telegraph instruments guided the company's early focus on improving telephone equipment.

Product Recognition

His telephones, first introduced in 1878, quickly gained acclaim for their superior quality and performance.

Initial Ownership Structure

While precise equity splits from the inception are not publicly detailed, Lars Magnus Ericsson maintained foundational ownership and control, fostering rapid innovation.

The early years of the company were characterized by concentrated ownership, which facilitated swift innovation and development in response to the growing demand for telephone networks. There is no significant public record of early angel investors or substantial stakes held by friends or family during this foundational period. The company's direction was firmly steered by Lars Magnus Ericsson's technical vision, a strategy that proved effective in establishing its reputation for quality in the burgeoning telecommunications industry. Understanding the Marketing Strategy of Ericsson in its early days helps contextualize its initial ownership structure.

Founders and Early Ownership Details

The initial ownership of L.M. Ericsson & Co. was a partnership, later consolidated under Lars Magnus Ericsson. This structure allowed for focused development and innovation.

• Founded in 1876 by Lars Magnus Ericsson.
• Initially co-owned with Carl Johan Andersson.
• Lars Magnus Ericsson became sole owner in 1886.
• Company transformed into a limited liability company in 1896.
• Focus on improving telephone equipment was central to early strategy.

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Ericsson's ownership journey began with its founder, Lars Magnus Ericsson, but significant shifts occurred early on, notably with the acquisition of AB Telefonfabriken and later, the substantial influence of International Telegraph & Telephone Corporation (ITT) in the 1930s. These events reshaped the company's shareholder landscape, setting the stage for future control dynamics.

The historical evolution of Ericsson's ownership reveals a complex interplay of strategic acquisitions and financial realignments. Initially, the acquisition of AB Telefonfabriken in the early 1900s, settled with Ericsson shares, diluted Lars Magnus Ericsson's stake and granted Stockholms Allmänna Telefonaktiebolag (SAT) direct influence. The financial distress of the Kreuger group in the early 1930s proved pivotal, leading to International Telegraph & Telephone Corporation (ITT) securing a majority ownership. Following Ivar Kreuger's demise, a consortium comprising ITT, Svenska Handelsbanken, and Stockholms Enskilda Bank (associated with the Wallenberg sphere) emerged as key stakeholders. By the 1930s, ITT held approximately a third of Ericsson's A shares, with Handelsbanken and the Wallenberg sphere holding significant, albeit smaller, portions. The Wallenberg family, through Investor AB, and Handelsbanken, via Industrivärden, continue to be central figures in Ericsson's ownership today. In 1960, the Wallenberg family's acquisition of ITT's shares bolstered their ownership of A shares to around 24%, while Handelsbanken maintained about 21%. This historical trajectory underscores the enduring influence of Swedish financial institutions and families in shaping Ericsson's corporate governance and strategic direction, a narrative detailed further in the Brief History of Ericsson.

Key Ericsson Shareholders and Voting Power

Understanding Ericsson's ownership structure is crucial for grasping its governance. The company employs a dual-class share system, significantly impacting voting rights.

• Investor AB is a major shareholder, holding 9.30% of shares and a substantial 24.52% of votes as of May 2024.
• AB Industrivärden also holds a notable stake, with 2.60% of shares and 15.10% of votes.
• AMF Tjänstepension & AMF Fonder are significant institutional investors, owning 2.97% of shares and 5.00% of votes.
• Other prominent institutional investors like BlackRock, Inc. and The Vanguard Group, Inc. also possess considerable stakes in Ericsson.
• As of May 30, 2025, Ericsson had a total of 3,371,351,735 shares, comprising 261,755,983 A shares and 3,109,595,752 B shares, with a total of 572,715,558.2 votes.

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The current Board of Directors at Ericsson is composed of eleven Directors elected by shareholders, three employee representatives, and their deputies. Jan Carlson was re-elected as Chair of the Board at the March 25, 2025, Annual General Meeting (AGM). The Board is instrumental in guiding the company's strategic direction and overseeing its operations.

Ericsson's voting power is significantly influenced by its dual-class share system, where A shares hold one vote and B shares hold one-tenth of a vote. This structure allows major shareholders like Investor AB and Industrivärden to wield substantial voting influence. For example, as of May 2024, Investor AB, holding 9.30% of shares, controlled 24.52% of the votes, while Industrivärden, with 2.60% of shares, commanded 15.10% of the votes. This arrangement is designed to ensure long-term strategic alignment and stability for Ericsson. The company's Revenue Streams & Business Model of Ericsson are managed under the Board's oversight, with the President and CEO handling daily operations.

Ericsson's Shareholder Landscape

Understanding Ericsson's ownership structure reveals the concentrated voting power held by key investors. This structure impacts corporate governance and strategic decision-making.

• Investor AB holds a significant portion of voting rights due to its share class.
• Industrivärden also possesses considerable voting power relative to its shareholding.
• The dual-class share system is central to Ericsson's ownership structure.
• Employee representatives are also part of the governance framework.

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Over the past few years, Ericsson's ownership has remained relatively stable, with key institutional investors continuing to hold significant stakes. Recent strategic moves, like the acquisition of Vonage in 2022, have expanded the company's operations without drastically altering its core ownership percentages.

In May 2025, Ericsson executed a plan involving the issuance and repurchase of C shares, ultimately converting them into B shares. This maneuver was tied to the company's Long-Term Variable Compensation Programs for its executive team and other key personnel, ensuring alignment with strategic goals. As of May 30, 2025, Ericsson held approximately 38 million B shares as treasury stock, with the LTV 2025 program set to involve up to 12.7 million B shares, representing about 0.38% of total registered shares over a three-year vesting period.

Aduna Joint Venture Formation

Ericsson finalized a significant joint venture, Aduna, on July 29, 2025. This venture is a 50:50 partnership with twelve global communication service providers, including AT&T, Bharti Airtel, Deutsche Telekom, and Vodafone.

Aduna's Strategic Focus

Aduna, operational since September 11, 2024, aims to aggregate and globally market network Application Programming Interfaces (APIs). This collaboration leverages the collective strength of major telecom operators.

Shareholder Stability and Influence

The ownership structure benefits from the long-term commitment of major shareholders like Investor AB and Industrivärden. This provides a degree of stability against rapid ownership shifts, supporting the Growth Strategy of Ericsson.

Potential Investment in Intel's NEX

Ericsson is exploring a minority investment in Intel's Network and Edge Group (NEX). This potential transaction, focused on communication and networking chips, is anticipated for completion in the latter half of 2025.

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