s lcd Sony and Samsung part ways on LCD partnership

The two consumer electronics giants Sony and Samsung has decided to part ways on their joint LCD manufacturing business, S-LCD with Samsung taking the reins. This doesn't come free for Samsung though, as the company is paying a fair amount of cash up front to Sony to take over the LCD manufacturing business on its own.

The two consumer electronics giants Sony and Samsung has decided to part ways on their joint LCD manufacturing business, S-LCD with Samsung taking the reins. This doesn't come free for Samsung though, as the company is paying a fair amount of cash up front to Sony to take over the LCD manufacturing business on its own.

Samsung has agreed to pay Sony a cash lump sum of around US$940 million for Sony's 50 percent in the joint venture; not exactly a small sum of money, but this is only part of the agreement between the two companies. As it happens, the two companies have signed a strategic agreement where Sony will source LCD panels from Samsung, although at market price. Sony's press release suggests that this is a good thing for Sony, as the company no longer needs to be worried about the actual manufacturing process or the cost of running the factories.

Sony will still be working with Samsung on the research and engineering side of things to bring out better and more advanced LCD panels and as such Sony will still have some level of control in terms of the products that Samsung will be manufacturing. The deal is set to be closed by the end of January as long as it passes the approval procedures by the various regulatory authorities.

Source: Sony