Samsung is buying out Sony’s
stake in their LCD joint-venture, S-LCD Corporation, formed back in
2004. The venture hasn’t been working very well for Sony, which has
reportedly been making a loss in the market for the past seven
years. Sony’s had to contend with a weakening Japanese currency, and
lowered profit margins in the face of falling prices since 2008. Samsung
on the other hand, has grown to become the largest manufacturer of LCD
and flat screen televisions in the world.
The Korean giant is reportedly buying
Sony’s stake for paltry sum of roughly $939m. The LCD panel business
alliance still continues in a form, in order to “respond to such
challenging conditions and to strengthen their respective market
competitiveness,” according to the statement released by Samsung.
The Japanese electronics giant will
still procure its LCD panels from Samsung, at market prices, Samsung on
the other hand, will gain "heightened flexibility, speed and efficiency
in both panel production and business operations" with its full
ownership. The LCD panel industry has seen a lot of scope in last couple
of decades, used for more than just television sets, from cameras to
computers, and mobile phones.
Source: WSJ
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