Feeds

Terrifying TV chimera born from Sharp, Foxconn lords' fling

Hon Hai spunks billions into struggling LCD biz

Choosing a cloud hosting partner with confidence

Foxconn owner Hon Hai Group has given limping Sharp a crutch by buying a stake in the Japanese electronics maker and pouring a few billion yen into its LCD business.

Taiwanese Hon Hai will hand over ¥66.9bn ($806m, £507m) for a 9.9 per cent stake in Sharp - and will fork out another ¥66bn for a 46.5 per cent stake in the joint venture telly business Sharp has with Sony.

LCD shipments worldwide have slowed for everybody, but Sharp is also suffering, along with Sony and Panasonic, from a major kicking in the market by Korean electro-behemoth Samsung. Sharp forecasts a net loss of ¥290bn ($3.5bn, £2.19bn) for the year ending March 31.

"The market surrounding electronics industry is becoming severe, with rapid price decline due to the development of digital technology and increasing competition in a global market," Sharp said in a statement on the deal with Hon Hai. "We believe timely action is necessary to tackle these changes in the market."

Japanese trio Sharp, Sony and Panasonic are taking harder hits in the LCD sector because they have struggled to stay competitive as they battle against a strong yen.

Sharp said the partnership with Taiwanese Hon Hai would allow the LCD biz to "launch cost-competitive components and products that fit to market demand". Sourcing stuff from Hon Hai should help Sharp to bring its manufacturing costs down and price tellies more attractively.

Sharp also said today that Sony was sticking with the joint venture, named Sharp Display Products (SDP), for the moment, although it won't be injecting any more capital for now.

The venture, in which Sony holds about seven per cent of shares, was agreed in April 2011 and will be next reviewed this September.

Today's amendment to the deal stipulates that Sony can demand that Sharp buy back its stocks, even before that month, "upon the occurrence of certain events, such as a transfer by Sharp to any third party of some or all of the shares that Sharp has in SDP".

After the Hon Hai deal, Sony has its seven per cent, Sharp now holds 46.5 per cent and Hon Hai, its founder Terry Gou and other investment corporations now hold about 46.5 per cent. ®

Security for virtualized datacentres

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.