A joint venture is a business relationship and strategic alliance between two or more entities in which all parties retain their distinct identities, rather than merging. These entities work collaboratively on the establishment of a new business or company, sharing the profits, losses, ownership, and risks.
A joint venture in simpler terms means a partnership between two entities or business individuals coming together to achieve some common goals and objectives. In the business world, a joint venture is the most well-suited way of raising a company and when it comes to property development joint ventures are an option to explore and when a joint venture deal goes well, it is a fruitful deal for the establishment and the people associated with it.
Some of the most well-known joint ventures are:
- Hulu, a joint venture between entertainment companies Disney and Comcast.
- Vevo, a joint venture between record companies Universal Music Group, Sony Music Entertainment, and EMI.
Sony Ericsson, a former joint venture between technology companies Sony and Ericsson