Samsung snaps up Sony's share of joint S-LCD business for $940m

Samsung will soon own the whole kaboodle of the flat-panel manufacturing joint venture it established with Sony in 2004.

Sony hopes that sloughing off its LCD manufacturing business will stem some losses with its struggling TV biz.

Samsung's screen technology business is about to get even bigger.

Samsung is now buying up Sony's share of the two companies' joint venture, S-LCD, for $940 million, or approximately 1.08 trillion South Korean won. The acquisition will shift Sony's 50 percent of the company--minus one share--into Samsung's possession, making it the S-LCD Corporation a wholly-owned Samsung subsidiary.

The shift is intended to ease some of Sony's continuing struggle with its TV business , which has posted a loss over eight straight years .

In addition to Samsung assuming control of the company, which manufactures LCD panels for consumer electronics like televisions and mobile phones, Sony will continue to source some of its LCD panels from S-LCD.

Sony and Samsung expect to complete the hand-over by the end of January 2012. Sony, in the meantime, also announced it will take a one-time charge of 66 billion yen ($845.4 million) due to a "reevaluation" of its S-LCD shares, partly due to the exchange rate. Over time, however, the company expects to see roughly 50 billion yen in annual savings as a result of shedding S-LCD's manufacturing arm.

About the author

Jessica Dolcourt reviews smartphones and cell phones, covers handset news, and pens the monthly column Smartphones Unlocked. A senior editor, she started at CNET in 2006 and spent four years reviewing mobile and desktop software before taking on devices.

 

Join the discussion

Conversation powered by Livefyre

Show Comments Hide Comments
Latest Galleries from CNET
Tech industry's high-flying 2014
Uber's tumultuous ups and downs in 2014 (pictures)
The best and worst quotes of 2014 (pictures)
A roomy range from LG (pictures)
This plain GE range has all of the essentials (pictures)
Sony's 'Interview' heard 'round the world (pictures)