Sony to sell S-LCD stake for $940m

Company is struggling to reduce massive losses from its TV business

Tags: LCDSamsung CorporationSony Corporation
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Sony to sell S-LCD stake for $940m Sony is selling its almost 50% stake in its joint LCD venture with Samsung for $940m. (Getty Images)
By  Georgina Enzer Published  December 27, 2011

Sony will sell its almost 50% stake in its LCD joint venture with Samsung Electronics to the South Korean company for $940 million, according to Reuters.

Sony is currently struggling to reduce huge losses from its TV business.

The seven-year-old S-LCD joint venture cut its capital by 15% in July.

In November, Sony warned of a fourth straight year of net losses for the financial year to next March, with its TV unit set to lose $2.2bn on tumbling demand and a surging yen.

The company said on Monday it would review its earnings forecast to reflect $847 million in impairment losses from the transaction, as well as expected future cost savings.

Shares in Sony ended 1.6% higher on the news, compared with a 1% gain in Tokyo's benchmark Nikkei average, while Samsung Electronics shares fell 0.2%.

Samsung expects the flat-panel TV market to grow 10% in 2012, and is aiming to outperform the market.

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