Sony agrees to discontinue LCD venture with Samsung

   

Struggling with a loss-making television business, Sony Corp has reportedly agreed to drop its LCD joint venture with Samsung Electronics. As per reports, Sony will now sell its stake to the South Korean company for 1.08 trillion won ($938.97 million).
 

Reliable sources informed, both the companies are already in conversation to terminate collaboration on the project, which has been referred to as S-LCD. The two companies have invested $1.8 billion (2.1 trillion won) in the joint venture. The venture is located south of Seoul and it focused to design LCD displays for large televisions using the "seventh generation" manufacturing process.
Sony holds about 50 percent stake in liquid-crystal display (LCD) joint venture S-LCD with Samsung, which was established in April 2004 to secure stable supplies of the component.
Tumbling demand and a surging yen are two significant reasons for the termination of venture. Latest stats revealed, Sony’s television unit alone set to lose $2.2 billion by the end of quarter. Now, it will concentrate on developing its strategy for smartphones
A Samsung spokesman said, the two companies would make an announcement regarding the joint venture very soon.