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    Sony, Samsung dissolve panel joint venture

    TOKYO (AP) — Japan's Sony and South Korean rival Samsung are dissolving their joint venture in liquid crystal display panels as Sony tries to stanch years of losses in its TV business.

    Samsung Electronics Co. will buy all of Sony's shares in the joint venture for about 1.08 trillion Korean won ($935 million) subject to a final agreement, Sony Corp. said Monday.

    The joint venture called S-LCD was set up in 2004. Sony, which fell behind in flat panel TVs, invested in a Samsung panel factory to ensure a steady supply of panels for its LCD TVs.

    Sony's TV operation has lost money for seven straight years and the company is straining to return that key business to profit.

    The prices of TVs as well as panels have been dropping so it makes more sense to buy panels at the market rate than to invest in production.

    Sony, which makes Bravia TV sets, does not make its own LCD panels.

    It said it will enter a new partnership with Samsung to buy panels, and will also continue buying panels from other manufacturers.

    Sony said it will suffer a loss of 66 billion yen ($846 million) for the third quarter of this fiscal year, which ends later this month, because of the declining value of investment in S-LCD.

    Getting out the production venture will produce substantial savings after January 2012, when the deal is completed, according to Sony.

    It was still unclear how Sony's profit forecast for the fiscal year through March 2012 will be affected, said company spokesman Takashi Uehara.

    ___

    Follow Yuri Kageyama on Twitter at http://twitter.com/yurikageyama

     

    21 comments

    • Lim  •  Kapar, Malaysia  •  5 mths ago
      i love samsung...
    • skull  •  5 mths ago
      if you're a smart buyer you'd go for samsung rather than sony. sony is just a name these days,
    • gary  •  Hagerstown, Maryland  •  5 mths ago
      Bad planning. Don't invest in the future, just make decisions that make the stock prices look god this year. Looks like it came back and bit them on the a--. Now they (Sony) are dependent on their suppliers whims.
    • BigE  •  5 mths ago
      I do not buy Sony anything. Proprietary memory, Proprietary everything that they can. Products are not as good anymore and prices are way too high - No thanks. JUST SAY NO TO SONY
      • Mr. G 5 mths ago
        The Sony consumer products I bought in the past all failed withing 2 or 3 years for no good reason. I understand their pro level gear has a good reputation but their consumer-grade stuff is crap.
    • Carl  •  Medford, Oregon  •  5 mths ago
      I bought a 51 inch Sony TV a few years back and it was a total waste of my money! They bundled it with a Sony sound system, also a total piece of junk!
      Don't buy SONY!!!
    • Lukman  •  Jakarta, Indonesia  •  5 mths ago
      I bought a LCD displayed brand Sonsung, so it was not a fake after all.
    • John M.  •  5 mths ago
      the once mighty Sony had fallen... Sony please come back.
    • Dave  •  San Francisco, California  •  5 mths ago
      Dissolve and cry losses right after they were found guilty of price fixing. Suffer you thieving #$%$
    • Kevin  •  Cambridge, Massachusetts  •  5 mths ago
      The quality of Sony's products has been on a steady decline for 20 years while all their products are still crazy over priced. They got away with junk products for years because they had the sony logo but that gravy train has ended and they can't trade on their name any more because everyone knows theproducts are pore. Every dividion sony operates is losing money and it is only a matter of time before it declares bankruptcy. Short sony now and make some money while you can.
    • NW  •  Sacramento, California  •  5 mths ago
      Who cares? .... Sony needs to hang it up...
    • Jeoffrey  •  Tampa, Florida  •  5 mths ago
      SONY THE ONE AND ONLY !!
    • Sciekosis  •  Houston, Texas  •  5 mths ago
      the Sony brand has become as useless as a paraplegic 90 year old man trying to screw a virgin.
    • Nick  •  5 mths ago
      C'mon people, Samsung sucks 12 shades of monkey balls! They cut corners on EVERYTHING (including testing their firmware) so I abandoned them years ago...
    • Tom2  •  Columbus, Ohio  •  5 mths ago
      Good for Sony.
    • Bernie -  •  5 mths ago
      samsung essentially had sony bending over and forck them upside down on panel business. sony has been walking like a duck since they launched the ps3. so i guess they are used to it. lmfao.
      • Jeff 5 mths ago
        In 2005 at a marketing conference Sony were told they had beaten Xbox which was late, over featured, over priced, and more about graphics than games.
        They were also told that if they became arrogant they would lose next time, because Xbox 360 would not repeat those mistakes.

        So next time Sony were more than arrogant, and copied the mistakes of Xbox.

        You lose - f'kwits.
    • MikeOxlong  •  5 mths ago
      But I will say the PS3 pales in comparison to the 360. I have 2 of each and would like to ditch the PS3s.
    • MikeOxlong  •  5 mths ago
      My Sony Bravia is the clearest TV in my house. And I have 5 from 4 different makers including the new LG LED 3D TV.
    • Tom2  •  Columbus, Ohio  •  5 mths ago
      I went through 4 Samsung 50 inch 3d plasmas in 7 months due to faulty manufacturing.
      I now own 2 50 inch LGS and haven't had a problem.
    • WhiteCryptonite  •  5 mths ago
      846 million? how do you lose that much and still stay in business. sounds like dreamy accounting to me to not pay taxes.
    • Argie Claro  •  Manila, Philippines  •  5 mths ago
      i only love LG electronics
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