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Samsung purchases Sony’s stake in LCD business alliance

sony samsung jvSouth Korean consumer electronics giant Samsung will be working hand in hand with Sony after the former purchased the latter’s shares of S-LCD, turning this joint venture into its wholly-owned subsidiary. This agreement will see Samsung pick up all of Sony’s shares of S-LCD Corporation (“S-LCD”), where around $935 million is paid to Sony by Samsung. A new strategic agreement is also drawn up so that the competitiveness of both companies will be increased, and Sony and Samsung are able to forge a new future thanks to cooperative engineering efforts that are focused on LCD panel technology.

What does Sony gain from this joint venture? They can cash out on their S-LCD shares, while securing a flexible and steady supply of LCD panels from Samsung, where it will be based on market prices, and they do shed the headache of operating a manufacturing facility, which can end up being rather costly in the end as well. As for Samsung, whole ownership of S-LCD would hopefully translate to increased flexibility, speed and efficiency in panel production and business operations. Don’t you just love win-win situation? [Press Release]

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