Sony sells LCD venture to Samsung

Sony will sell its entire holdings in an LCD manufacturing company to Samsung Electronics; its partner in the venture started nearly eight years ago.

The $934m deal will see Sony still buying panels for its TVs from the newly formed subsidiary S-LCD that Samsung will create. The move comes as Sony aims to cut costs as it struggles to revive its fortunes in TV manufacturing; once its core business.

The company said in November that it expected to lose around one billion US dollars in the current financial year to next April.

"This deal will allow Sony to acquire LCD panels from Samsung Electronics in a stable way based on market prices, without the responsibility or costs that come with operating a factory," Sony said in a press release.

It went on to say that its focus would be on a 'four-screen strategy,' with at its heart smartphones, laptops, tablets, and televisions.

Sony has already said it plans to buy Ericsson's 50 per cent stake in the Sony Ericsson mobile phone joint venture.