Sharp, Pioneer to establish optical disk JV

Pioneer Corp. and Sharp Corp. have signed a partnership agreement to establish a joint venture in the optical disk business area.

The goal of the new joint venture is to make more effective use of the management resources of both companies in the optical disk business field and to capture a leadership position in this area, particularly in the Blu-ray Disc market where significant growth is expected in the future.

The optical disk businesses of the two companies will be transferred to the new joint venture, with a target date for the start of operations around Oct. 1, 2009. The new company will engage in the development, design, manufacture and sales of optical disk products, focusing on optical disk drives, recorders and players.

According to the press release, the two companies will elaborate the necessary details of the JV and are committed to negotiating in good faith with the goal of officially signing the joint venture agreement by June 25, 2009.