Samsung buys out Sony S-LCD share in $940m TV deal
Sony will sell its shares in the LCD panel joint-venture S-LCD to partner Samsung, the two companies have announced, in a deal worth $940m, as the Japanese firm struggles to coax profit out of its TV line. S-LCD Corporation had been established in 2004 by Sony and Samsung, with this new deal – that will leave S-LCD a wholly owned Samsung subsidiary – expected to close by the end of January 2012. Sony will continue to source displays for some of its TVs from S-LCD. “This transaction will enable [Sony] 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” the Japanese company says. As for Samsung, it “anticipates heightened flexibility, speed and efficiency in both panel production and business operations.” The deal is another step in Sony’s attempts to bring its large-format LCD business into profit, the TV division proving to b