Confirming reports early this morning in Japan’s Nikkei, and later in The Wall Street Journal, Sony (SNE) announced in a press release it will sell to Samsung Electronics (SSNLF) Sony’s part of a joint venture with Samsung to make LCD panels, called S-LCD.
Samsung will pay Sony 1.08 trillion Korean won, or roughly $940 million. Samsung will supply Sony with panels from the factory. The deal will close by the end of January, the companies expect. After a one-time, non-cash impairment charge of �66 billion ($845 million), Sony expects to reap “substantial savings” on the close of proceeding LCD panels.
Sony said it’s re-evaluating its current forecast for the fiscal year ending March 31st, 2012.
In discussing the reasons for the dissolution of the venture, Sony and Samsung cite the fact that the market conditions for LCD panels and televisions have “changed” since 2004, when the venture was formed, without going into further detail.
Sony’s ordinary shares rose 1.6% in Tokyo trading to close at �1,394
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