Sony Corp ends joint venture with Sharp for manufacturing panels

Sony Corp ends joint venture with Sharp for manufacturing panels

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Japanese based electronics manufacturing giant Sony Corp has brought an end to its joint venture with its rival Sharp Corp to produce and sell large liquid crystal displays for the TVs. The latest development is a new strategy to buy the panels instead of investing in manufacturing them.

Sony on May 24, 2012 said that it will sell back all 7% of its stake to the joint venture Sharp Display Products that it held since the year 2009. But the Japan based company (Sony) will not lose any money and will actually receive 10 billion yen which is the same what it paid for the shares in the Sharp subsidiary.

Sharp manufactures the panels in Sakai city in western Japan. The maker of the Walkman portable player and Play Station 3 game machine has also recently ended the joint venture with Samsung Electronics to produce flat panels.

Sony in the month of March said that as per their initial plans it will not raise its stake in Sharp Display Products. Sony in the past few years has invested money in its core TV business, amidst competition from Samsung and other rivals. Sony’s flat TV business is now slowly coming down with the introduction of new products from the rivals.