Foxconn agrees to acquire controlling interest in Sharp for $3.5 billion

Foxconn logoOn Wednesday morning, Bloomberg and Reuters reported that the struggling Japanese giant Sharp had sold a two-thirds stake to Foxconn, the world’s largest electronics contractor manufacturer, for 389 billion Japanese yen ($3.5 billion, £2.4 billion).

The offer is about $1 billion less than what Foxconn had been expected to offer last month.

The deal, if it is formally approved by both corporate boards, is expected to represent a crowning achievement for Foxconn Chairman Terry Gou, who hopes that his newly enlarged firm can become a major supplier of smartphone screens. At the moment, Sharp is one of just three screen suppliers to Apple.

In a 45-page February 2016 statement to investors, Sharp wrote:

Sharp recorded large deficits for the year ended March 2015, due to a lack of measures, such as rapid business changes, against the intensified competition in the LCD TV business in America, and the deterioration in the business environment for the energy solution business, including stagnant demand for solar power, as well as a lack of foresight in responding to market changes, including the fact that the shift to high-definition products did not take off, inadequacy in dealing with price declines, and inadequacy in marketing for the small- and medium-size LCD market, as well as recording of the allowance for the price difference in long term contracts for polysilicon materials used in solar panels, whose prices are higher than the market price, and incorporating the difference from the market price of small- and medium-size LCDs as a write-down of the inventories to improve earnings structure.

Sharp is still a risky purchase for Foxconn. In the fiscal year ending March 2015, Sharp suffered a net loss of ¥222 billion ($1.9 billion, £1.4 billion). Its most recent half-year results weren't particularly positive either, posting an operating loss of ¥25.2 billion ($224 million, £156 million).

Source: Ars Technica

Tags: Foxconn, Sharp

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Consumer group recommends iPhone 8 over anniversary model
 
LTE connections wherever you go and instant waking should come to regular PCs, too
 
That fiction is slowly becoming a reality
 
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
 
Human moderators can help make YouTube a safer place for everyone
 
Google says Progressive Web Apps are the future of app-like webpages
 
All 2018 models to sport the 'notch'
 
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)