Samsung Weighing Pros and Cons of Spinning Off LCD Business

Paul Lilly

Samsung's mobile DRAM business is at the top of its game , and the company is doing pretty well moving smartphones and tablets, too. The company's LCD flat-screen television business is an entirely different story. Samsung has been losing money on LCD TVs and is reportedly thinking about spinning its LCD division off, though no decision has yet been made.

"We are internally reviewing various options," Samsung spokesman James Chung told Reuters , "but nothing has been decided yet."

Samsung's LCD business resulted in an $891 million operating loss for all of 2011, so it's easy to see why the company would consider ditching TVs and focus more heavily on profitable sectors like mobile devices and memory products. Another option being discussed is merging Samsung's LCD business with Samsung Mobile Display, a joint venture with Samsung Electronics and affiliate Samsung SDI Co. that produces OLED panels.

News of the possible spinoff and merger comes after Samsung's LCD partnership with Sony ended in late 2011.

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