Sharp electronics, well known for creating top-quality displays, LCDs and TVs, has been in trouble for quite some time now. The company has apparently been struggling with its finances and has been trying to secure outside investment. Now, Samsung has decided to pool in with $112 million, securing 3.08 percent share in the company.
A while ago, Sharp struck a similar deal with Qualcomm and for a while now, rumors were abound that it was trying to reach out to Samsung for an investment in the company. The deal has apparently finalized between the two as Sharp dished out an official announcement today, citing that Samsung has finally agreed to invest 10.4 billion yen in the company.
The announcement further stated that this collaboration will help to ‘build up mutual trust relationship toward increase in the corporate value of Sharp and Samsung Electronics in the field of LCD business, and at the same time to enhance Sharp’s capital adequacy.’
Whereas this deal brings Sharp more capital to stabilize itself, it also profits Samsung by letting the Korean electronics maker gain a solid foothold into the LCD supply chain. As it is, the sales of TV, LCDs and other products featuring displays is a significant part of Samsung’s overall electronics business and a more close tie-up with the Japan-based LCD supply-chain will help Samsung significantly in the coming days.
Source: Reuters
Courtesy: Engadget
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