Sony and NEC -> Optical Disk Drive company merge <- the end of HD DVD?

[thunderhawk]

Sony, NEC sign agreement on optical disc drive joint venture

TOKYO (AFX) - Sony Corp said it and NEC Corp have signed a definitive agreement on establishing a joint venture, Sony NEC Optiarc Inc, to jointly seek business opportunities in the optical disc drive field.

Sony and NEC will spin off their respective optical disc drive businesses on April 1 and transfer them to the joint venture, which is to be established on April 3.

Shinichi Yamamura, deputy president of the video business group of Sony, will become president of the new company.

The new firm will be capitalized at 490 mln yen. Sony will have 55% and NEC 45%.

Source: http://www.forbes.com/business/feeds...fx2554631.html
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Sony and NEC Conclude MOU Aiming to Establish Joint Venture in Optical Disc Drive Business
Sony Corporation (hereafter Sony) and NEC Corporation (hereafter NEC) have concluded a Memorandum of Understanding (MOU) aiming to establish a Joint Venture company in the optical disc drive business. Sony and NEC will work together from now to reach agreement on a final contract. The new company will aspire to become the leading company in the optical disc drive sector.

Sony will hold a 55% stake in the new company while NEC's stake will be 45%. Sony and NEC will make preparations to transfer their respective optical disc drive operations to the Joint Venture, targeting a business start on April 1, 2006. The Joint Venture will focus on the planning, design, manufacturing and marketing to manufacturers of optical disc drives (DVD and CD drives) for integration into products such as PCs. The company will operate on a global basis.

The new company will pool the best in optical disc drive technology (e.g. NEC's strengths in LSIs and Sony's expertise in optical pickups) to deliver high quality and reliable products to consumer electronics and PC makers on a timely basis.

Sony's President and Electronics CEO, Ryoji Chubachi commented:

Optical disc drives are key components for a broad range of devices and we are strategically focusing our development resources in this sector. By teaming with NEC which has excellent technology in areas such as DVD drives, I believe we can work effectively to enhance our product lineup and quality on a global scale.

NEC's President Akinobu Kanasugi, commented:

The market for high value-added drives to be integrated into PCs and consumer electronics products is rapidly expanding. I believe we have made the best choice in partnering with Sony with whom we can build a total value chain covering procurement of key components, production and marketing. This will allow us to realize the aim of becoming the top vendor in this sector.

Capital
Amount to be determined (Sony will have a 55% stake, NEC will have a 45% stake)
Operational Start
Planned for April 1, 2006
Scale of Business
In FY04, the optical disc drive businesses of both companies combined generated about 220 billion yen.
Executives
Sony will designate the President while NEC will designate the Vice President of the company.

Source: http://www.nec.co.jp/press/en/0511/1703.html
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Sony and NEC to combine optical businesses: victory for Blu-ray?

In a move that could have long-reaching consequences for next-gen video and data-storage technologies, Sony and NEC have established a joint venture merging their optical drive businesses. The joint venture was first proposed last November, and is expected to begin business by April 1. While JVs between competitors are not unheard-of, what makes this one particularly unusual is that Sony is, of course, one of the leaders of the Blu-ray group, while NEC sits squarely in the HD DVD camp. The two companies have made no announcements as to what kind of optical drives the new company -- to be known as Sony NEC Optiarc -- will make, but here's one clue: Sony will have a 55% stake in the $1.9 billion company, and it will be managed by one of Sony's execs. Looks to us like Optiarc is going to be a very Blu company, leaving the HD DVD group with one less key supplier of hardware.

Source: http://www.engadget.com/2006/02/27/s...y-for-blu-ray/


This is the end of HD DVD. One of the founder members of HD DVD will soon support Blu-ray Disc, I can feel it. If they'll every do a poll, HD DVD vs BD and Sony will have 55%... I think it's clear. HD DVD has lost a leg.