Samsung and Sony dissolve joint venture

Samsung and Sony dissolve joint venture

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Asia Bizz: South Korean company Samsung and Japanese based company Sony, which were once involved in a joint venture, have now dissolved the partnership. The joint venture has been dissolved in the liquid crystal display panels.

Sony is currently trying to make up for the losses it faced in the TV business due to which the joint venture has been dissolved. On December 26, 2011, Sony Corp said that Samsung Electronics Co will be buying all the shares in the joint venture priced at 1.08 trillion Korean won and is subject to a final agreement.

The joint venture came in to effect in the year 2004, Sony could not make up in the market of the flat panel TVs and has also unvested in the Samsung’s panel factory to ensure a steady supply of the panels for its LCD TVs. Sony TV, as a result, lost money for seven years and the company is now trying its best to revive the key business to profit.

In the recent times, the prices of the TVs as well as the panels have been dropping due to which it made more sense to buy the panels at market rate than to invest in the production. The company which makes Bravia TVs does not make its own LCD panels.