Ericsson May Stop Funding Sony Venture

Ericsson may stop funding its unprofitable cellular-phone venture with Sony Corp. and plans to farm out 4,000 jobs as the world’s top maker of wireless networks seeks to conserve cash to stay in business.

The Swedish company is raising $3.2 billion in a share sale to pay back debt and cover severance costs as it heads toward a second-straight annual loss.

Tokyo-based Sony, the world’s No. 2 consumer-electronics maker, will continue to support the venture.

Shares of Stockholm-based Ericsson rose 1.4%. Shares of Sony were down 9 cents to $43.51 on the NYSE.