Sony to End Partnership with Samsung

Sony announced recently that it is ending its partnership with Samsung. The joint venture for LCD panel manufacturing was established in 2004. The S-LCD stake held by Sony will be sold to Samsung. With this, Samsung will become the sole owner of S-LCD.

Following the sale, Sony will focus more on its foundering business – Sony TV. The deal for the S-LCD stake has been fixed at $935 million.

Reports suggest that as a result of the end of the partnership, Sony will incur a loss of $845 million in the third quarter. However, according to the company, with its exit from the LCD panel business, Sony will be able to save around $642 million per year.

Formalities regarding the sale of stakes are expected to end by February 2012. Sony’s exit from the LCD market is not an indication that the company will end its manufacturing business. The company still has a stake of 7 percent in another joint venture.

Before ending the partnership, Sony and Samsung plan to set up an agreement regarding the purchase of LCD panels. The agreement has been planned with the aim of increasing the competitiveness of the two firms in the market. The details of the deal have not yet been disclosed. Sony stated in this regard that it plans to procure Samsung LCD at market price. The company is not keen on taking the responsibility of running a manufacturing unit.

In the gaming scenario, Sony is all set to launch PlayStation Vita in February. According to an announcement made by the company, quite a few games are set to feature in PlayStation Vita.

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