Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Samsung to buy Sony's share of LCD panel joint company for $934 million

Sony, facing huge losses in its TV business, said it will still acquire panels from the S-LCD venture.

Sony said Monday it will sell off its entire stake in an LCD (liquid crystal display) manufacturing joint venture with Samsung Electronics for 1.08 trillion won (US$934 million).

The two companies signed a contract under which Samsung will turn the company, S-LCD, into a fully-owned subsidiary that will still provide panels for Sony televisions. The Korean-based LCD manufacturer was established in April of 2004, with Sony holding just below a 50 percent share.

The move comes as Sony faces deep losses in televisions and faces questions as to whether it can revive the once-core business. The Tokyo-based company said in November it expected to lose over a billion dollars in the current fiscal year through April, though it is currently recalculating its forecast in light of the sale.

"This deal will allow Sony to acquire LCD panels from Samsung Electronics in a stable way based on market prices, without the responsibility or costs that come with operating a factory," Sony said in a press release.

Like domestic peers, Sony has long struggled to make its TV business profitable against foreign rivals like Samsung and Vizio in the U.S., but executives have repeatedly said they won't abandon the product. The firm's latest plan calls for a focus on profitability over the number of units sold, and shifting to acquiring panels from outside manufacturers.

The iconic Japanese company has said it is focused on a "four-screen strategy," which aims to offer content and interconnect smartphones, laptops, tablets, and televisions. It announced in October it would acquire Ericsson's 50 percent stake in their Sony Ericsson mobile phone joint venture, allowing it to better integrate smartphones into its overall product lineup.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Ericsson, Samsung, Samsung Electronics, Sony, Sony Ericsson, Vizio

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: business issues, consumer electronics, mergers and acquisitions, samsung, sony, TVs
Latest Blog Posts
Whitepapers
  • A Governance Guide for Hybrid SharePoint Migrations
    Cloud-based computing represents a powerful new option for managing enterprise content, offering increased flexibility, efficiency, and reduced cost for IT infrastructure, data storage, and applications. However, for a variety of business and technical reasons, most organisations will take a phased approach to adopting cloud-based services, which will require them to continue to maintain their on-premises SharePoint environments during the transition. This white paper, written by Chris Beckett from SharePoint Bits, discusses some of the benefits and risks of hybrid SharePoint deployments, and presents governance considerations that are essential for ensuring a successful migration.
    Learn more »
  • Leveraging the Service Catalog to Scale Your MSP Business
    When assessing an MSP’s maturity and prospects, one question provides more insights than any other: “What’s in your service catalog?” A well-defined service catalog can set the framework for growth. The lack of a service catalog can significantly impede an MSP’s ability to scale. This paper explores why the service catalog is so vital, and provides some practical guidelines MSPs can apply in order to ensure their service catalog provides maximum utility and benefit.
    Learn more »
  • Work Life Web 2011
    The 2011 WorkLifeWeb research shows that, while the new social Web is a potential tool for corporate success, there are ‘social media growing pains’ in evidence among both frontline workers and their managers.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.