Brüten take off from LCD joint venture with Samsung Sony: sources

TOKYO, Oct 30 (bdnews24.com/Reuters) - Sony Corp., struggling with a loss-making television business, is considering one familiar said the LCD joint venture with South Korea's Samsung Electronics in an effort to cut costs, sources with the matter on Sunday.

The Nikkei business daily, which reported the news earlier, an agreement by the end of this year was with the objective of the Japanese electronics and entertainment giant, said almost to sell 50 percent joint venture S-LCD Samsung to liquid crystal display.

Sony must be on a global oversupply due to outsourcing to reduce procurement costs and deal with rapidly falling prices of LCD panels.

Industry sources told Reuters in Tokyo, which hoped to Sony, the JV to quickly resolve, but, it still terms or agree with Samsung.

Spokesperson for Sony and Samsung Electronics turned down an opinion.

South Korean newspaper Chosun Ilbo had denied in July, the Sony a similar report on the joint venture dissolution.

A well-informed industry source of told of Reuters in Seoul, that such reports appear "garbled" because Sony with Samsung has negotiated their return on investment in the joint venture, rather than investments.

"Under the contract for the LCD joint venture, are allowed the two parties to discuss such issues, the outsiders as a step for Sony to withdraw, the joint venture could misunderstand", said the source, who spoke on condition of anonymity.

In April cut the two companies the capital in the joint venture of 555 million $, when Sony tried, slash and Samsung with next-generation shows promoted its TV losses.

Sony is under pressure to show they reduce their exposure to the loss-making TV furniture, and focus on the development of its strategy for smartphones can.

Last week, it announced that it will take control of the mobile phone joint venture with Ericsson as she tries to catch to take advantage of his music and video applications on Smartphone leaders such as Apple Inc.

Sony: July-September quarter results on Wednesday. Analysts are forecasting, that Sony are the operational profit view of 200 billion yen ($ 2.63 billion) consumer confidence in Europe and the United States, as well as the strong yen bites into profits will wobble for the year to March 2012, with.

The electronics giant, which launches TV with Samsung and LG Electronics, must be to reduce, how it performs in its television business for its eighth straight annual loss.

Sony has sold TV factories in Spain and Mexico in the last few years and more than half of the production company Hon Hai precision industry including stores. It retains the four TV facilities for themselves in Japan, Brazil, China and Malaysia.

bdnews24.com/RN/1140h

Source: bdnews24.com

Read More on News Daily