Sony sells 'S-LCD' stake to Samsung
by Steven Mostyn - Dec 27 2011, 12:29
Image: zzzack/Flickr.
Clearly keen on ‘minding its own business’, Japanese electronics heavyweight Sony has announced it is to dissolve a longstanding production partnership with Samsung.
According to Sony’s press release, it intends to flog its 50 percent stake in ‘S-LCD’, the panel-manufacturing venture in question, to the South Korean giant for a massive $934 million USD.
Although the sale will enable Sony to perhaps create some distance between one its core industry rivals, Samsung’s soon-to-be wholly owned subsidiary will still provide panel units for Sony.
“This deal will allow Sony to acquire LCD panels from Samsung Electronics in a stable way based on market prices, without the responsibility of costs that come with operating a factory,” outlined Sony in an official press release.
It is believed that Sony’s decision to sell is based on poor fiscal traction in the LCD television sector, which contributed to Sony posting expected losses of more than $1 billion USD in a November report.
News of the sale comes after Sony recently revealed its separation from Swedish tech company Ericsson, with which it made a name crafting handsets for the mobile phone arena (i.e., the Xperia line).
Comment on this Story