Samsung buys Sony's stake in LCD joint venture for $939 million

Sony and Samsung have ended their LCD joint venture established in 2004. The split comes after rumors of the dissolution were first reported in October and follows Sony's November announcement of a $1.2 billion annual loss due to weak demand from its loss-leading television division coupled with a strong yen. Samsung will acquire all of

Sony and Samsung have ended their LCD joint venture established in 2004. The split comes after rumors of the dissolution were first reported in October and follows Sony's November announcement of a $1.2 billion annual loss due to weak demand from its loss-leading television division coupled with a strong yen. Samsung will acquire all of Sony's 50 percent share for 1.08 trillion won (about $938.97 million) and convert the joint venture into a wholly-owned subsidiary. In addition to monetizing its share in S-LCD, Sony enters into a strategic relationship with Samsung that secures a steady supply of LCD panels based on market prices and without the burden of operating a manufacturing facility. The deal is expected to close by January of 2012 subject to regulatory approvals.

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