Samsung officially confirmed that it will spin off its loss-making LCD division into a new company named Samsung Display. The new firm will be created on April 1st with a paid-in capital of 750 billion won ($668 million).
Samsung’s LCD business had an operating loss of 750 billion won last year as global TV sales slowed. The spinoff company may eventually merge with the Samsung Mobile Display venture that makes organic light-emitting diode, or OLED, panels, as Samsung prepares to meet growing demand for the new technology, said James Song, an analyst at Daewoo Securities Co.
“It’s a good decision for Samsung Electronics,” Seoul- based Song said by telephone. “The long-term direction for their display business is going OLED. They can improve efficiency of investment by combining similar businesses.”
