Sony agreed to sell 50 percent stake in LCD venture to Samsung for$940 million.

sonyTokyo: Sony Corp has agreed to sell its almost 50 percent stake in an LCD joint venture with the world’s biggest television maker Samsung Electronics for $940 million, Korean firm said on Monday.

The venture cut its capital by 15 percent in July and industry sources said that Sony was conferred an exit, aiming to switch to cheaper outsourcing for flat screens for its TVs whereas Samsung pushes forward with next-generation displays.

Sony holds an almost 50 percent stake in the venture, S-LCD, which was recognized in April 2004 to locked stable supplies for Sony’s flat-screen TVs.

Sony will get 66 billion yen charge after exiting the venture, the Tokyo-based company said in a detach statement.

On Monday, Sony said that it would report a 66 billion yen ($856 million) mutilation loss for the October-December quarter although expected to cut 50 billion yen in yearly costs in the LCD business by ending the venture with Samsung.

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