Sony Corp today signed a deal with to sell its entire stake in its liquid crystal display (LCD) joint venture with Samsung Electronics to the South Korean company for 1.08 trillion won ($940 million).
Sony holds a nearly 50-per cent stake in LCD joint venture S-LCD, which was set up in 2004 to secure stable supplies of panels for its LCD TVs since it does not make its own LCD panels.
However the global market for LCD panel sand TVs have now changed amid sluggish TV demand. In order to respond to such challenging conditions and to strengthen their respective market competitiveness, the two companies have agreed to shift to a new LCD panel business alliance.
Sony, the maker of Bravia TVs and PlayStation game consoles, said that the sale will enable it to monetise its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices, without the responsibility and costs of operating a manufacturing facility.
Tokyo-based Sony will take a 66-billion yen charge after exiting the venture.
The sale also comes as the world's third-largest TV maker is estimated to lose 175 billion yen ($2.2 billion) this fiscal year.