Sony Offloads Stake to Samsung, Ending LCD Panel Joint Venture
Samsung will acquire all of Sony's shares of the two companies' LCD panel manufacturing joint venture.Electronics giants Sony and Samsung have signed agreements to transition the current business relationship with respect to LCD panels. 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. Under the terms of the share transfer, Samsung will pay Sony approximately $940 million. 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 companies said the agreement also allows Sony and Samsung to continue cooperative engineering efforts focused on LCD panel technology.
"For Sony, this transaction will enable it to monetize its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility," a company statement explained. "With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations."