Sony Sells LCD Production To Samsung
The Sony and Samsung S-LCD joint venture was set up in 2004 to pool production of LCD screens. However, Sony announced in a statement published yesterday that it would be selling its entire stake in the business (50%) to Samsung. The deal is due to cost Samsung over £600 million but will make the South Korean manufacturer the exclusive owner of S-LCD.
Through the venture, the two firms have been sharing technology and new innovations. Once the sale goes through, Samsung will be able to continue supplying S-LCD screens to Sony for its TVs, but the agreement doesn't tie Sony to S-LCD as exclusive supplier for its components—Sony will therefore be free to source LCD screens elsewhere.
This sell-off will bring a boost to Sony's finances while also freeing the firm from the burdens of cost and responsibility that come with running a production plant. The deal should be closed by the end of January 2012 once the transaction has been approved by the relevant authorities.
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