Sony, Samsung dissolve panel joint venture

Dec 26, 2011 By YURI KAGEYAMA , AP Business Writer
File photo shows the headquarters of Japanese electronics giant Sony in Tokyo in 2009. Sony has agreed to sell its stake in a joint liquid crystal display panel venture in South Korea to its partner Samsung Electronics, the two companies said Monday.

Japan's Sony and South Korean rival Samsung are dissolving their joint venture in liquid crystal display panels as Sony tries to stanch years of losses in its TV business.

Sony Corp. said Monday that Co. will buy all of Sony's shares in the joint venture for about 1.08 trillion Korean won ($935 million) subject to a final agreement.

The joint venture called S-LCD was set up in 2004. Sony, which fell behind in , invested in a Samsung panel factory to ensure a steady supply of panels for its .

Sony's TV operation has lost money for seven straight years and the company is straining to return that key business to profit.

The prices of TVs as well as panels have been dropping so it makes more sense to buy panels at the market rate than to invest in production.

Sony, which makes Bravia TV sets, does not make its own LCD panels.

It said it will enter a new partnership with Samsung to buy panels, and will also continue buying panels from other manufacturers.

Sony said it will suffer a loss of 66 billion yen ($846 million) for the third quarter of this fiscal year, which ends later this month, because of the declining value of investment in S-LCD.

Getting out the production venture will produce substantial savings after January 2012, when the deal is completed, according to Sony.

It was still unclear how Sony's profit forecast for the fiscal year through March 2012 will be affected, said company spokesman Takashi Uehara.

Explore further: Amazon launches grocery service for Prime members

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Sony headed for fourth straight year in the red

Nov 02, 2011

(AP) -- Sony reported a 27 billion yen ($346 million) loss for the latest quarter and downgraded its annual earnings forecast Wednesday to stay in the red for the fourth year straight, battered by the strong yen and poor ...

Sony to establish ST Mobile Display Corporation

Mar 31, 2005

Second Manufacturing Base for Low-Temperature Polysilicon TFT LCD Panels for Mobile Products Sony Corporation today announced the establishment of "ST Mobile Display Corporation". This follows Sony's purchase of the LCD p ...

Recommended for you

Amazon launches grocery service for Prime members

38 minutes ago

Amazon is taking aim at grocery stores and discounters like Wal-Mart with a grocery service that lets its Prime loyalty club members fill up to a 45-pound box with groceries and get it shipped for a flat rate of $5.99.

Facebook buys fitness app Moves

4 hours ago

Facebook has bought the fitness app Moves, which helps users monitor daily physical activity and their calorie counts on a smartphone.

SK Hynix posts Q1 surge in net profit

11 hours ago

South Korea's SK Hynix Inc said Thursday its first-quarter net profit surged nearly 350 percent from the previous year on a spike in sales of PC memory chips.

Zynga founder Pincus leaving operations role

23 hours ago

Online game maker Zynga says company founder Mark Pincus is stepping down as chief product officer, less than a year after he was replaced as the company's CEO.

User comments : 0

More news stories

Amazon launches grocery service for Prime members

Amazon is taking aim at grocery stores and discounters like Wal-Mart with a grocery service that lets its Prime loyalty club members fill up to a 45-pound box with groceries and get it shipped for a flat rate of $5.99.

Facebook buys fitness app Moves

Facebook has bought the fitness app Moves, which helps users monitor daily physical activity and their calorie counts on a smartphone.

Study links California drought to global warming

While researchers have sometimes connected weather extremes to man-made global warming, usually it is not done in real time. Now a study is asserting a link between climate change and both the intensifying California drought ...