Struggling with a loss-making television business, Sony Corp has reportedly agreed to drop its LCD joint venture with Samsung Electronics. As per reports, Sony will now sell its stake to the South Korean giant Samsung for 1.08 trillion won ($938.97 million).

Reliable sources informed, both the companies are in conversation to terminate collaboration very soon. In the project, which has been referred to as S-LCD, both the companies have invested $1.8 billion (2.1 trillion won). The venture is located in the south of Seoul and it focused to design LCD displays for large televisions using the "seventh generation" manufacturing process. 

Sony holds about 50 percent stake in liquid-crystal display (LCD) joint venture S-LCD with Samsung, which was established in April 2004 to secure stable supplies of the component.

It is reportedly said that tumbling demand and a surging yen are two significant reasons for the termination of venture. Latest stats reveal, Sony’s television unit alone is set to lose $2.2 billion by the end of quarter.

Now, Sony will concentrate on developing its strategy for smartphones. 

A Samsung spokesman said, both the companies would make an announcement regarding the termination of joint venture very soon. 

ITVoir NewsDesk