06:04
Syed Qasim Abbas
TOKYO (AP) — Japan's Sony and South Korean rival Samsung are dissolving their joint venture in liquid crystal show panels as Sony tries to stanch years of losses in its TV business.
Samsung Electronics Co. can purchase all of Sony's shares within the joint venture for regarding one.08 trillion Korean won ($935 million) subject to a final agreement, Sony Corp. said Monday.
The joint venture referred to as S-LCD was established in 2004. Sony, that fell behind in flat panel TVs, invested in a very Samsung panel factory to make sure a gradual offer of panels for its LCD TVs.
Sony's TV operation has lost cash for seven straight years and therefore the company is straining to come that key business to profit.
The prices of TVs further as panels are dropping thus it makes a lot of sense to shop for panels at the market rate than to take a position in production.
Sony, that makes Bravia TV sets, doesn't create its own LCD panels.
It said it'll enter a brand new partnership with Samsung to shop for panels, and can additionally continue shopping for panels from alternative makers.
Sony said it'll suffer a loss of sixty six billion yen ($846 million) for the third quarter of this fiscal year, that ends later this month, as a result of the declining worth of investment in S-LCD.
Getting out the assembly venture can manufacture substantial savings when January 2012, when the deal is completed, in step with Sony.
It was still unclear how Sony's profit forecast for the fiscal year through March 2012 are affected, said company spokesman Takashi Uehara.
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