Sony Sells LCD Venture Stake to Samsung

Sony Corporation and Samsung Electronics Co., Ltd. announced that the two companies have signed agreements to transition the current business relationship with respect to LCD panels. 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. Samsung will pay 1.08 trillion won ($935 million) in cash for Sony’s stake in S-LCD Corporation. 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. 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. As for Samsung, whole ownership of S-LCD would hopefully translate to increased flexibility, speed and efficiency in panel production and business operations.
source:www.ubergizmo.com