Samsung announced a $110 million investment in cash-strapped Sharp Corp. in exchange for a 3 percent ownership in Japan's TV pioneer. While it bolsters Sharp's chances of survival amid a shrinking demand for TVs, the deal's a boon for the world's top mobile phone vendor and a bane for arch rival Apple Inc. Samsung supplies Apple with chips and components for the iPad and iPhone notwithstanding their fierce battles in court and in shelves, and Sharp is the second-biggest supplier of LCD panels for Apple's mobile devices. Although Samsung says it won't get involved with Sharp's business management and decision making in "any way or form", the deal will give Samsung a steady supply of LCD screens, as well as early access to Sharp's cutting-edge technologies. The deal is scheduled to be completed March 28.
What Else You Need To Know
- Sharp manufactures screens for the full-sized iPad at its Kameyama, Japan facility but cut production as demand shifted to the iPad mini.
- Sharp is headed for a nearly $5 billion loss this fiscal year, laid off more than 10,000 workers in the past months, and sold three of its plants to Foxconn last year but is still one of the world's largest LCD panel makers.
- Chipmaker Qualcomm infused $120 million in Sharp in December last year, and key Apple supplier Foxconn's is also expected to make a major investment.
Other sources
Sharp is one of Apple's key suppliers, and this investment gives Samsung a stake in the company as Apple winds down its reliance on Samsung for components.- Eric M. Zeman, Phone Scoop
The concept of "frenemies" or "coopetition" -- competing with companies in certain areas while partnering in others -- is nothing new for the tech industry.- Shara Tibken, CNET
- Phone Arena
- Samsung wants in on the IGZO screen tech action, to inject $110 million in Sharp
- Apple Insider
- Samsung to become Sharp's largest foreign shareholder with 3% stake worth $112M
- Other
- Samsung gets a foot in at key Apple supplier Sharp with $110 million investment
- Electronista
- Samsung pays $112M to Sharp for improved LCD relationship
- Phone Scoop
- Samsung Invests $110M in Ailing Sharp
- BGR
- Samsung buys into key Apple supplier with $110 million Sharp investment
- PCWorld
- Samsung locks up Sharp as long-time screen provider
- Venture Beat
- Samsung nabs 3% of Sharp for $112M, taking their display relationship to the next level
- iPhone In Canada Blog
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Samsung Buys 3% Stake in Sharp for $110 Million
Sharp’s decision to sell a smaller stake to Samsung – its rival in LCD panels and television sets – shows how desperate the management of the Japanese company is: Over the past months it laid off 11,000 staff and mortgaged key assets.