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Sharp Reportedly Enters Exclusive Merger Talks With Foxconn

Category: General News
Posted: 01:48AM

It's looking like Sharp may soon have a new owner, as it has reportedly entered exclusive takeover talks with Foxconn. Both Foxconn and Innovation Network Corp. of Japan (INCJ) were the frontrunners to purchase Sharp, but now it looks like Foxconn is the winner. Sharp was put up for sale early last year to try and save the troubled Japanese TV manufacturer, which saw its stocks drop 50% in 2015. The company was supposedly leaning more towards INCJ in order to keep the company in the hands of its fellow countrymen, despite Foxconn offering far more money. Foxconn's CEO, Terry Gou, made a personal trip to Sharp HQ last week to offer a $5.45 billion bid, with that bid being the winner. INCJ only offered $2.54 billion, and despite having bailed out Sharp three times in the last three years, it looks like Sharp is going with the Taiwanese tech giant.

Sharp currently supplies the screens to Apple's iPhone line, with Foxconn producing parts for Apple, Amazon, and Xiaomi, among others. If Foxconn's deal goes through, it could potentially lower production costs to those companies and more, while also absorbing all of Sharp's current debt and retaining its top management. Sharp has lost nearly $10 billion over the last several years due to lost TV sales and market share to rivals in Korea and China. Keep it tuned for updates on whether or not Sharp becomes a part of Foxconn, and exactly what it means for potentially cheaper hardware (or at least any that utilize an LCD screen).

Source: IBTimes

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