Sony has decided to sell its stake in an LCD TV joint venture to Samsung as it continues to suffer losses in the TV market.
The company had a 50 percent stake with Samsung in the 9 year old LCD TV joint venture. Sony has agreed to sell its share to the Korean consumer electronics giant for $940 million, according to TechRadar.
S-LCD Corporation was set-up by Sony and Samsung as a LCD TV panel joint venture in April 2004 in Tanjeong, South Korea.
Sony stated in a press release that apart from selling its stake to Samsung, the two companies have also signed a strategic agreement to purchase and sell LCD TV panels for healthy competition.
"For Sony, this transaction will enable it to monetise its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility," stated Sony in a statement.
"With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations," the company added.
Sony also stated it had agreed to bear a loss of JPY 66 billion in the third quarter of the fiscal year ending March 31, 2012.