Samsung may spin off money-losing LCD business
Samsung Electronics said yesterday it is considering spinning off its LCD business, a move seen as aiming to beef up its competitiveness.
“The company is mulling spinning off the LCD business, but details have not been decided,” Samsung Electronics said in a regulatory filing.
Analysts said that the move came as its LCD business suffered from losses for the fourth consecutive quarter in the final quarter of last year amid industry-wide slumps.
Market watchers said the potential spin-off is raising the chance it may merge with Samsung Electronics’ organic light-emitting diode (OLED) display-making unit Samsung Mobile Display.
Samsung Mobile Display is a 50-50 percent joint venture with Samsung Electronics and its affiliate Samsung SDI. The company mainly produces OLED displays for mobile devices such as smartphones.
Previously, market watchers expected Samsung Electronics to absorb Samsung Mobile Display, but Wednesday’s filing backs up a possibility that its LCD business is likely to merge with Samsung Mobile Display, according to analysts.
“If Samsung Mobile Display’s mainstay business is combined with the LCD business, synergy in the display panel business is likely to increase,” said Koo Ja-woo, an analyst at Kyobo Securities. Yonhap
More in Industry
Big business recoils at new legal legislation
Hyundai Mobis has developed a hydrogen-powered forklift
Asiana adapts passenger plane to carry more cargo
Eastar Jet CEO threatens to sue pilot union for libel
Chaebol heads talk shop at closed-door dinner