It’s bad news for all those people who are planning to buy Sony LCD TV or those who have purchased Sony LCD TV just because of value-worth of Sony brand. Today, Samsung has announced that it has agreed to buyout stake in Sony LCD. This buyout will help Samsung to enhance and expand its LCD division. The Korean electronic gadgets maker will pay $939 million in cash to Sony to pouch its LCD arm. This buyout will also help Samsung to maintain the lead in LCD TV market as Sony holds significant market in LCD segment and stayed tough nut to crack for Samsung in past.
“Under the agreement, Samsung will acquire all of Sony’s shares of S-LCD Corporation, the two companies’ LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung,” as said by Samsung Electronics.
However, this move has taken shape as Sony is on its way to restructure its TV business which has been making loss since last seven years. The deal will definitely benefit Sony Corp. which is planning to bring revolution in Television industry by introducing “Four Screen Strategy TV” in future. This television will bridge the gap of network services between Sony products like tablets, personal computers, mobile phones and TVs.
This has resulted in appreciated share price by 1.60 percent of Sony Corp. in Japan Trade Exchange after the announcement.
Interestingly, After this buyout Samsung has become the world largest maker of TVs and Flat screen panels. This shows that buyout has benefited both the companies in a positive manner and future growth is reflecting directly.
Although, this deal might be painful for Sony LCD TV fans since many of the customers prefer Sony LCD TV above other brands. The major reason could be the quality and features provided by Sony Corp. which is far ahead of other LCD TV brands.
The deal has resulted as the New Year gift for both of the companies. One hand Sony got benefited by selling a pie of its loss running business and on other hand Samsung tops the Television industry. Also, this deal will definitely help Sony to sit on cash pile that will help it in restructuring its management and regaining its market position, lost in last seven years.