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.