In a bid to streamline its unprofitable television business, Sony said on Monday it would sell nearly 50 percent stake in an LCD joint venture with Samsung to the South Korean company for 940 million U.S. dollars, according to media reports on Tuesday.

Sony’s exit from the joint venture, which was set up in Tangjeong, South Korea, in April 2004, will let it switch to less-expensive outsourcing options.

Analysts have long blamed high production costs for Sony's squeezing profit margins in a cutthroat competition. Besides, a strong yen has also weighed on Sony’s profit by eroding the value of its overseas earnings when they are repatriated into yen.

In November, Sony, the world's third largest flat panel TV maker, warned of a fourth straight year of net losses for the financial year to next March, with its TV unit alone set to lose 2.2 billion dollars on tumbling demand and a surging yen.

Sony said it expected to cut costs in its LCD business by 50 billion yen a year as a result of the departure.

Sony “aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility,” it said in the statement.

Meanwhile, Samsung Electronics, the world leader in flat-panel televisions, would gain freer rein in producing its next-generation displays by taking control of S-LCD. (Agencies)

VietNamNet/Xinhuanet