Who Owns Ericsson Company?

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Who Owns Ericsson?

Understanding Ericsson's ownership is key to grasping its strategic path and accountability. Its dual-class share structure significantly empowers major long-term shareholders, influencing its direction.

Ericsson's ownership structure is a blend of significant institutional backing and public float, shaping its corporate governance and strategic decisions in the competitive telecommunications landscape.

The primary shareholders of Ericsson are Investor AB and Industrivärden, both Swedish investment companies. Investor AB holds a substantial stake, often exceeding 20% of the voting rights, while Industrivärden also maintains a significant ownership position. These entities have historically played a crucial role in guiding Ericsson's long-term strategy and ensuring stability.

Beyond these major shareholders, a considerable portion of Ericsson's stock is held by institutional investors such as mutual funds and pension funds, alongside individual retail investors. The company's shares are publicly traded on Nasdaq Stockholm and Nasdaq New York, making its ownership widely distributed among a global investor base. This public trading allows for liquidity and broad market participation, though the influence of the anchor shareholders remains a defining characteristic of Ericsson's governance. For a deeper dive into the external factors affecting the company, consider an Ericsson PESTEL Analysis.

The origins of Ericsson trace back to 1876 when Lars Magnus Ericsson, alongside Carl Johan Andersson, established a small mechanical engineering shop in Stockholm, Sweden. Lars Magnus Ericsson, a skilled instrument maker, held the foundational ownership and control of this nascent venture. By 1886, he had become the sole owner.

Founding Ownership

Lars Magnus Ericsson and Carl Johan Andersson were the initial co-founders. Lars Magnus Ericsson later consolidated full ownership.

Early Corporate Structure

The company transitioned to a limited liability company in 1896. This was mainly to limit personal liability.

Employee Share Distribution

Lars Magnus Ericsson distributed 100 shares as a bonus to the oldest employees in 1896. This showed early employee recognition.

Strategic Acquisition Impact

Acquiring AB Telefonfabriken involved payment in Ericsson shares. This significantly shifted ownership influence.

Merger Dominance

The 1918 merger with SAT resulted in SAT-associated interests holding a majority stake. This led to a change in control.

Founder's Role Evolution

Following the merger, Lars Magnus Ericsson resigned from management and the board. This marked a transition in his direct involvement.

Public records do not extensively detail early angel investments or significant stakes held by friends or family during the initial phase of Ericsson. The company's early expansion was primarily driven by Lars Magnus Ericsson's direct control and the growing demand for telephone networks. A pivotal moment in early ownership occurred around the turn of the century when Ericsson acquired AB Telefonfabriken from Stockholms Allmänna Telefonaktiebolag (SAT). This acquisition was settled with Ericsson shares, granting SAT substantial direct influence and consequently reducing Lars Magnus Ericsson's ownership percentage. This strategic move created significant mutual interests, ultimately leading to a merger in 1918. The newly formed entity, Allmänna Telefon AB Ericsson, saw SAT-associated interests become dominant, contributing 56 percent of the new company's SEK 51.5 million equity.

Ericsson's Early Ownership Trajectory

Ericsson's ownership structure evolved significantly from its founding. Early growth was self-funded and founder-controlled, with a notable shift occurring through strategic acquisitions and mergers.

• Founded in 1876 by Lars Magnus Ericsson and Carl Johan Andersson.
• Lars Magnus Ericsson became sole owner by 1886.
• Transitioned to a limited liability company in 1896.
• Acquisition of AB Telefonfabriken in exchange for shares led to increased SAT influence.
• The 1918 merger with SAT resulted in SAT-associated interests holding a majority stake.
• This historical shift in ownership is crucial for understanding Mission, Vision & Core Values of Ericsson and its subsequent development.

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Ericsson's ownership journey has been marked by significant shifts, from early financial control by Ivar Kreuger to post-war restructuring involving international entities and Swedish banking spheres. These historical events have shaped the current landscape of who owns Ericsson.

The evolution of Ericsson company ownership reflects a dynamic interplay between industrial consolidation, financial markets, and strategic investment. Initially shaped by figures like Ivar Kreuger, the company's ownership structure saw major international players like ITT enter and later exit, paving the way for the significant influence of Swedish financial institutions. This historical context is crucial for understanding the current Ericsson company ownership.

Major Stakeholders in Ericsson

As of early 2025, institutional investors are the dominant force in Ericsson's shareholder base. Investor AB and Industrivärden, representing the Wallenberg and Handelsbanken spheres respectively, continue to hold substantial influence, particularly due to the company's dual-class share structure.

• Investor AB: Held 23.7% of shares and 39.5% of votes as of May 2024, with further B share acquisitions in July 2025.
• Industrivärden: Held 7.8% of shares and 13.1% of votes as of May 2024.
• Other Institutional Investors: Collectively own approximately 60% of shares, including major entities like BlackRock, Inc., The Vanguard Group, Inc., State Street Global Advisors, Inc., T. Rowe Price Group, Inc., Hotchkis & Wiley Capital Management Llc, and Primecap Management Co/ca/.
• Total Institutional Ownership: Stands at 7.99%.

This stable, long-term ownership model, particularly by Investor AB and Industrivärden, contributes to Ericsson's strategic focus and stability in the competitive telecommunications industry. Understanding these major investors is key to grasping who owns Ericsson and how that ownership impacts its strategic direction. For a deeper dive into the company's financial operations, explore the Revenue Streams & Business Model of Ericsson.

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Ericsson's governance is shaped by its board of directors, currently chaired by Ronnie Leten, with Börje Ekholm serving as President and CEO. The board's composition reflects significant influence from major shareholders, with Jacob Wallenberg and Helena Stjernholm holding deputy chair positions, representing key investment entities.

Ericsson's ownership structure is characterized by a dual-class share system, significantly impacting voting power. The company has A shares, each carrying one vote, and B shares, with one-tenth of a vote. As of May 30, 2025, Ericsson has 3,371,351,735 total shares, comprising 261,755,983 A shares and 3,109,595,752 B shares. This distribution results in a total of 572,715,558.2 voting rights, with A shares accounting for 261,755,983 votes and B shares contributing 310,959,575.2 votes. Consequently, A shares, representing approximately 57% of total voting rights, hold disproportionate control compared to B shares, which make up about 43% of the votes. This arrangement grants substantial influence to holders of A shares, notably Investor AB (linked to the Wallenberg family) and Industrivärden. Despite criticisms regarding this structure, such as those voiced by activist investor Cevian Capital in March 2022, the current CEO, Börje Ekholm, maintains the support of these key institutional investors and other A-share insiders, highlighting the enduring power of the voting rights distribution in Ericsson ownership.

Ericsson's Voting Power Dynamics

Ericsson's share structure grants significant voting control to A shares. This concentration of power influences the company's strategic direction and governance.

• A shares have 10 times the voting power of B shares.
• As of May 30, 2025, A shares hold approximately 57% of total voting rights.
• Key Swedish institutional investors, like Investor AB and Industrivärden, are major holders of A shares.
• This structure ensures substantial influence for long-term shareholders in Ericsson's decision-making.

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Over the past three to five years, Ericsson's ownership has seen subtle shifts, primarily driven by institutional investor activity and internal equity management for compensation programs. While major shareholders remain consistent, there's a notable increase in institutional participation, indicating growing confidence in the company's direction.

Ericsson's ownership structure has experienced a notable trend of increasing institutional ownership in recent periods. For instance, Summit Securities Group LLC significantly boosted its stake by 200.1% in the first quarter of 2025, and Millennium Management LLC expanded its holdings by 234.6% in the fourth quarter of 2024. ABC Arbitrage SA also established a new position in the first quarter of 2025. As of August 19, 2025, total institutional ownership reached 7.99%. These movements highlight a growing interest from various investment funds in the company's stock.

Institutional Investor Activity

Significant increases in holdings by firms like Summit Securities Group LLC and Millennium Management LLC demonstrate growing institutional confidence in Ericsson's market position and future prospects.

Equity for Compensation

Ericsson has managed its equity for executive compensation, issuing over 46.7 million shares for LTV programs since 2022, representing a modest dilution of approximately 1.4%.

Strategic Acquisitions Impact

Acquisitions, such as the 2022 purchase of Vonage, have broadened Ericsson's business scope without fundamentally altering the core ownership percentages of its largest, long-term shareholders.

Leadership and Stability

While leadership changes occur, such as Fredrik Jejdling's departure in mid-2025, the company's dual-class share structure and the enduring commitment of major investors like Investor AB and Industrivärden contribute to a stable ownership environment, supporting the Growth Strategy of Ericsson.

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