Sony sells stake in LCD joint venture to Samsung for $940 million

Samsung will acquire all of Sony's shares of S-LCD Corporation, the companies' LCD panel manufacturing joint venture established in 2004, making S-LCD a wholly owned subsidiary of Samsung. Samsung will pay Sony about $940 million for its stake in the venture, as Sony struggles to reduce huge losses in its TV business. The companies have agreed to a strategic agreement for supply and purchase of LCD panels. For Sony, this deal should mean they are able to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility. With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations.

 

SOURCE: Sony Press Release and Reuters