Sony Selling Share of Joint LCD Panel Company to Samsung

Sony just announced on Monday that it plans on selling its entire stake in a single LCD manufacturing joint venture with Samsung for a measly $934 million. The two companies negotiated and signed a contract that will have Samsung turn the company, known as S-LCD, into a fully-owned subsidiary that will provide panels for Sony TVs, among other technologies. The manufacturing company was established by Sony and Samsung in April of 2004 with Sony owning a little less than 50%.

This acquisition comes at a point when Sony faces extreme losses in its television market and also faces lots of inquiries about whether or not it can revive the business that was once at the company's core. Sony announced back in November that it expected to lose more than $1 billion in the current fiscal year through April, even though it is currently recalculating that number in lieu of the recent sale.

According to a Sony press release, "This deal will allow Sony to acquire LCD panels from Samsung Electronics in a stable way based on market prices, without the responsibility or costs that come with operating a factory."

Like so many other companies, Sony has struggled to find profit in the LCD market, despite the fact that executives have claimed that they will not abandon the product. The newest plan by Sony calls for a shift to focus on profitability as opposed to the number of units sold while also shifting to acquiring panels from other manufacturers.

Sony has also announced that it is focused on a "four-screen strategy". This strategy is said to offer content and interconnect smartphones, tablets, laptops and other portable devices, as well as televisions. The company announced back in October that it would acquire Ericsson's 50% stake in their Sony Ericsson mobile phone partnership, which would allow the company to better integrate smartphones into its overall product lineup.

Source: PC World - Samsung to Buy Sony's Share of LCD Panel Joint Company for $934 Million

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HP Sues AU Optronics for Fixing LCD Panel Prices

HP recently filed a law suit against AU Optronics in which HP accused the company of conspiring to fix prices of thin-film transistor liquid crystal display panels according to the filing.

According to a document filed on August 19 in federal court in San Francisco by HP Vice President and General Manager for HP's Displays Business Jun Kim, a complaint for damages alleging violations of antitrust laws was filed under seal in order to conceal confidential information about HP's process for acquiring LCD panels from HP's competitors.

According to a related document, AUO and other companies "conspired to fix the prices of LCD panels". The document is related to a complaint about a pending group case that was filed against LCD makers on behalf of purchasers of the screens used in personal computers, televisions and mobile devices like smartphones and tablets.

Yawen Hsiao, a spokeswoman for AUO, was not immediately aware of the complaint when recently contacted for information by multiple media outlets. Hsiao also declined to comment further on anything regarding such complaints or a lawsuit between AUO and HP. HP is one of the largest clients AUO has and provides the company with panels used in laptops and computer monitors.

However, if it is true that HP is suing AUO for fixing prices, it wouldn't be surprising. The Taiwanese company was indicted last year for supposedly conspiring to fix prices on flat-panel screens sold around the world. The conspiracy lasted from 2001 until 2006. Apple, Dell and HP were among the many companies directly affected by the supposed scheme according to the United States Justice Department.

Source: Bloomberg - HP Sues AU Optronics in U.S. Court Alleging It Fixed Prices of LCD Panels

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