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Foxconn investment in Sharp looking less likely due to LCD manufacturer’s shrinking stock value

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Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock valueFoxconn's parent, Hon Hai Precision Industry, partnered up with Sharp earlier this year, taking a stake in Sharp's Sakai LCD manufacturing plant and investing another $850 million in the company. Unfortunately, that latter investment deal is in danger of dissolving due to Sharp's financial troubles. The Wall Street Journal reports that Sharp's shares have fallen enough in the months since the aforementioned agreement was consummated in March -- due to flagging sales and excess inventory -- that Sharp's given Hon Hai the option to back out of the deal. However, Hon Hai's still interested in buying ten percent of the Japanese company, and has expressed an interest in renegotiating the terms of the investment. So, it seems we'll have to wait and see if Sharp accepts Hon Hai's continued advances, but you can read more about the company's financial woes right now at the source below.

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Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock value originally appeared on Engadget on Mon, 06 Aug 2012 17:50:00 EDT. Please see our terms for use of feeds.

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Sony formally quits Sharp LCD joint venture, takes back every yen it invested

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Sony formally quits Sharp LCD joint venture, takes back every yen it invested

After Sony cut off its supply of capital to the ill-fated Sakai production plant that it jointly owns with Sharp, it became clear that the final goodbye may be little more than a formality. And here it is, in the form of a cold, resolute press release stating that Sony is selling its seven percent stake back to Sharp and taking back the 10 billion yen ($126 million) it originally invested. The only reason given is the "rapidly changing market for LCD panels and LCD televisions," which is a polite reference to the fact that profits from big TVs are well below what these companies predicted back in the heady days of 2008 and early 2009, when the impact of the global economic crisis loomed without yet being fully apparent. Fortunately for Sony, which is in the delicate stages of reform, the solid pre-nuptial agreement it had in place with Sharp should protect the company from having to revise its financial forecasts for the coming year -- not that those were particularly great in the first place.

Continue reading Sony formally quits Sharp LCD joint venture, takes back every yen it invested

Sony formally quits Sharp LCD joint venture, takes back every yen it invested originally appeared on Engadget on Thu, 24 May 2012 03:04:00 EDT. Please see our terms for use of feeds.

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