Foxconn has agreed to buy Sharp after many predicted the deal would fall through. The buyer has now snapped up the former giant at a price massively reduced from the initial asking price.
The jewel in the deal from Foxconn’s point of view will undoubtedly be the chance to offer Apple, for which it makes phones and tablets. some fairly appealing new screen technology. Displays have been Sharp’s strength for some time now, so technology professionals can expect to see results from this purchase to start coming through fairly rapidly.
The deal has been valued at around $350m, for which Foxconn will get a two thirds stake in Sharp, more than enough for a controlling interest. The initial figure on offer was closer to $440m but further liabilities at Sharp became apparent and at one stage it looked as though the deal was not going to go ahead.
The terms allow for Foxconn to increase its stake in Sharp next year.