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Samsung to acquire all of Sony’s shares of S-LCD

Radford C. Dec 27, 2011 0

sony-samsung-s-lcd-logoBack in April 2004, the S-LCD corporation was created between Samsung and Sony to manufacture LCD screens for both giants.  S-LCD originally had production facilities in Japan, South Korea, Baja California and Mexico, where both Samsung and Sony would produce the LCDs for most (if not all) of their television sets. Aside from TVs, S-LCDs also covered mobile devices. Now Sony is parting ways with the S-LCD group (which is about 50% ownership) but will be getting a lump sum from Samsung — all $939 million of it.

Excerpt from Press Release:

Sony estimates that the transaction will result in substantial savings on and after January 1, 2012 in respect of costs associated with its procurement of LCD panels. The current estimate of the yearly savings in respect of such costs is approximately JPY 50 billion (approximately $642,000 in U.S. dollars), compared to LCD panel procurement costs estimated for the fiscal year ending March 31, 2012. Neither the one-time loss nor the estimated cost savings were included in Sony’s forecast of consolidated financial results for the current fiscal year ending March 31, 2012, announced on November 2, 2011. Sony is currently reevaluating this forecast, taking into account this transaction and other factors that might affect its full year FY2011 consolidated financial results forecast.

For the full press release, check out the link at the source.

Via »Source