In 2004 Samsung and Sony forged a strong LCD production partnership under the name S-LCD. The two companies have now ended S-LCD and Samsung has bought Sonyâ€™s stake for $939 million. Sony and Samsung will instead enter into a â€śstrategic agreementâ€ť.<br /><br /><h3>Sony leaves S-LCD</h3>In 2004 the two electronics giants invested in a new joint venture company called S-LCD. Samsung owned the PVA LCD technology and now received an investment partner, and Sony was able to secure a steady supply of LCD panels.<br /><br /><p align=center><img class="imgresponsive" src=pictures/slcdended.jpg><br><i>Sony and Samsungâ€™s S-LCD partnership is over</i></p><br />Sony has already said that they were <a href=http://www.flatpanelshd.com/news.php?subaction=showfull&id=1320058161><b>looking to leave the LCD partnership</b></a> and now it is official. Samsung has bought Sonyâ€™s 50% stake in the S-LCD company for 939 million US dollars, leaving Samsung with 100 % ownership.<br /><br />Instead the two companies enter into a â€śstrategic agreement for supply and purchase of LCD panelsâ€ť, which is interpreted as a deal to sell and supply LCD panels from Samsungâ€™s LCD factories to Sonyâ€™s future LCD-TVs.<br /><br />Sony hopes to secure a more flexible and steady supply of LCD panels in the future, with lower market risk and without the responsibility of operating a manufacturing facility. The sale will be closed by the end of January 2012.<br /><br />Sonyâ€™s TV division is currently going through a phase of major changes. The first step was to <a href=http://www.flatpanelshd.com/news.php?subaction=showfull&id=1320659256><b>split the TV division into three</b></a> and Sonyâ€™s exit from the S-LCD partnership is part of the transition.