Sony is going to sell its stake in a LCD joint venture with Samsung to the Korea based tech giant. Sony has got nearly 50% ownership of this joint venture. According to some sources, Sony has agreed to sell its stake for a huge amount of $940 million to its partner. This move by Sony is being seen by many as an attempt to cover up its losses in this year. Some reports have claimed that Sony has faced losses around a billion dollars this year which is a gigantic amount for even a giant of Sony’s size.
This agreement was expected by many market analysts. According to Sony’s official website,”Under the agreement, Samsung will acquire all of Sony’s shares of S-LCD Corporation (“S-LCD”), the two companies’ LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung.”
Furthermore, the official website of Sony states,”Concurrently, the two companies have entered into a new strategic agreement for the supply and purchase of LCD panels with a goal of enhancing the competitiveness of both companies. The agreement also allows Sony and Samsung to continue cooperative engineering efforts focused on LCD panel technology.”
No doubt, this agreement between Sony and Samsung will strengthen the bond between them, but still Sony will face heavy losses in the coming time because of re-evaluation of its shares. 
The deal is pretty straight forward and it is expected that the whole transaction will be completed in January 2012 if the regulatory authorities approve this deal.
This is one of the desperate attempts by Sony to increase its revenue. Sony has got a huge number of products and they are popular amongst people. Yet, due to the high price of its products, bad customer relationship and the PlayStation Network fiasco earlier this year, Sony is having a hard time at the moment.
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