Sharp and Pioneer are reported to be setting up a joint venture to merge their optical disc businesses and take a leading position in the growing Blu-ray disc market.
Both companies have been negatively affected by the global economic downturn. The strong yen also reduced their overseas profits, and they are facing massive restructuring costs.
Sharp, the top shareholder in Pioneer with a 14% stake, doubled its loss estimate for the year just ended last week, while Pioneer exited the flat TV business in February.
Indeed, establishing an optical disc joint venture with another company was one of the main restructuring measures that loss-making Pioneer unveiled in February.
The new joint venture, which aims to start operations in October, will develop, produce and sell optical disc drives, recorders and players.
Story filed 12.04.09