Samsung to Buy Sony’s Share of LCD Panel Joint Company for $934 Million - royaltymornay

Sony same Monday it will sell off its entire stake in an LCD (liquidness crystal display) manufacturing joint venture with Samsung Electronics for 1.08 trillion South Korean won (US$934 cardinal).

The two companies signed a contract nether which Samsung will turn the company, S-LCD, into a fully-owned subsidiary that will even render panels for Sony televisions. The Korean-supported Liquid crystal display manufacturer was established in April of 2004, with Sony property just below a 50 percent share.

The act comes as Sony faces unsounded losses in televisions and faces questions every bit to whether information technology can revive the one time-core business enterprise. The Tokyo-founded company said in November it expected to lose o'er a billion dollars in the current fiscal year through April, though IT is presently recalculating its forecast in light of the sale.

"This deal will allow Sony to acquire LCD panels from Samsung Electronics in a stable way based on marketplace prices, without the duty or costs that come with operating a factory," Sony said in a release.

Like domestic peers, Sony has long struggled to make its TV business profitable against foreign rivals like Samsung and Vizio in the U.S., merely executives have repeatedly said they South Korean won't abandon the production. The crisp's latest plan calls for a focus on profitability over the number of units sold, and shifting to acquiring panels from outside manufacturers.

The iconic Nipponese company has said it is convergent on a "four-screen scheme," which aims to declare oneself subject matter and interconnect smartphones, laptops, tablets, and televisions. Information technology announced in October information technology would acquire Ericsson's 50 percent bet on in their Sony Ericsson mobile phone joint venture, allowing it to meliorate integrate smartphones into its overall ware lineup.

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