Samsung has announced that it plans to spin off its unprofitable LCD division and focus on making thinner, brighter televisions, according to a Bloomberg report.

The new company, provisionally named Samsung Display Co., will be set up April 1 with paid-in capital of 750 billion won ($668 million), Samsung said in a filing today. 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.”