Back in 2004 Sony and Samsung set up a joint venture to produce LCD TVs with a separate company which was called the S-LCD Corporation, and now Sony has announced that Samsung will buy its stake in the company for $939 million.
For Sony, this transaction will enable it 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. With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations.
Obviously this will help Sony with their cash flow as the company reported losses earlier in the year of $1.2 billion.
For Sony, this transaction will enable it 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. With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations.
Obviously this will help Sony with their cash flow as the company reported losses earlier in the year of $1.2 billion.
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