Samsung to Acquire Sony’s Share of S-LCD
Sometimes competitors join forces for the mutual benefit of each party, which is what Samsung and Sony did by teaming up on their S-LCD venture. Now, Sony is bailing, selling its almost 50% share to Samsung for a reported $940 million.
Sony’s struggles in the TV business are no secret, and this move looks to be an effort for the company to outsource its displays to a cheaper alternative elsewhere. There appears to be no bad blood in this deal, as Sony may even continue to get some of its displays from S-LCD. For its part, Samsung will now be able to claim S-LCD as a wholly-owned subsidiary.
For Sony, this means that it is looking for cheaper ways to put screens on its devices; for Samsung, this means that it will press ahead on developing new display technologies.
The deal is expected to close in January 2012.
Sony’s struggles in the TV business are no secret, and this move looks to be an effort for the company to outsource its displays to a cheaper alternative elsewhere. There appears to be no bad blood in this deal, as Sony may even continue to get some of its displays from S-LCD. For its part, Samsung will now be able to claim S-LCD as a wholly-owned subsidiary.
For Sony, this means that it is looking for cheaper ways to put screens on its devices; for Samsung, this means that it will press ahead on developing new display technologies.
The deal is expected to close in January 2012.