Andre Yoskowitz
26 Dec 2011 16:44
Samsung has bought out Sony's share of their LCD joint venture S-LCD for $940 million.
The two companies started the venture in 2004 and there have been rumors of a break-up since the late summer.
Reads the press release: "Under the agreement, Samsung will acquire all of Sony's shares of S-LCD Corporation ('S-LCD'), the two companies' LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung. In consideration for the share transfer, cash consideration of approximately KRW 1.08 trillion will be paid to Sony by Samsung. Concurrently, the two companies have entered into a new strategic agreement for the supply and purchase of LCD panels with a goal of enhancing the competitiveness of both companies. The agreement also allows Sony and Samsung to continue cooperative engineering efforts focused on LCD panel technology."
Sony saw a massive loss of $1.2 billion this year for its TV division, thanks to low demand out of Europe and a strong Yen not seen since the end of World War II. Samsung remains the top LCD maker in the world, with a profitable TV division.