It’s no secret that Sony has been struggling in the television market lately, a niche that they once dominated. In a bold move, the company has sold its stake in its LCD joint venture with Samsung, for a total of almost $1 billion.
This deal will allow Sony to acquire LCD panels at market prices without the operational costs of producing them, which is reported to save the company $640 million a year. This is a heavy burden to be unloaded, since Sony has reported to have suffered consistent losses in their TV division for the past seven years. And that’s not even mentioning other issues such as the recent PlayStation fiasco, and the terrible tragedy that Japan has suffered lately.
“Under the agreement, Samsung will acquire all of Sony’s shares of S-LCD Corporation, the two companies’ LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung,” according to Samsung’s statement. The Korean giant acquired Sony’s shares for a total of almost $939 million (1.08tn Won), marking the official end of the joint venture which was started in 2004.
This recent turn of events now solidifies Samsung’s top spot as the world’ largest manufacturer of TVs and flat screens displays.