[UPDATE] Foxconn just bought Sharp for $6.2 billion

[TopWargamer]

Source 1: http://gizmodo.com/report-major-apple-manufacturer-foxconn-has-bought-sha-1761179899?utm_campaign=socialflow_gizmodo_facebook&utm_source=gizmodo_facebook&utm_medium=socialflow

Source 2: http://asia.nikkei.com/Business/Deals/Sharp-accepts-Hon-Hai-s-6.2bn-buyout-offer

 

Sharp, a company that's not necessarily amazing nor terribly bad, just 'aight, got bought out by Hon Hai Precision Industry, better known as Foxconn. Sharp had been struggling over the last little while to accept Foxconn's offer or to have essentially ¥500 billion (~$4.4 billion) injected into the company by the Innovation Corp. of Japan. Sharp went with the highest bidder, Foxconn, for ¥700 billion (~$6.2 billion). Sharp will now restructure its operations under Foxconn's umbrella. Specifics have yet to be announced, although I'm not entirely sure what Foxconn will do with Sharp. Continue to sell Sharp's products under the Sharp name? Perhaps, more than likely. 

 

 

UPDATE: Thank you @zMeul for the heads up.

Foxconn has put their acquisition on hold at the last minute. According to the Wall Street Journal, new information has come about that lists Sharp as having ¥350 billion ($3.1 billion) in contingent liabilities. The acquisition announcement already made Sharp's stock price drop by 14%, and this new news puts the entire deal at risk. Foxconn very well may scrap the deal entirely.

Source 1: http://www.bloomberg.com/news/articles/2016-02-25/sharp-agrees-to-6-2-billion-bailout-from-foxconn-nikkei-says

Source 2: http://www.androidauthority.com/sharp-foxconn-deal-on-hold-676514/

[Guest Kloaked]

9 minutes ago, TopWargamer said:

although I'm not entirely sure what Foxconn will do with Sharp. Continue to sell Sharp items under the Sharp? Perhaps, more than likely. 

It'd be neat if Razer were somehow able to buy them and sell under the name Razer Sharp.

 

 

In all seriousness though, this is an interesting thing to happen. I wonder what will come of it for consumers.

[Clyne]

Well Sharp wasn't going under or higher, so this is out of the ordinary. 

I expect the stock price to raise up the next day...

Funny how the Gizmodo news page has a picture of workers putting GPUs together....Sharp made GPUs?

 

[MoonSpot]

15 minutes ago, TopWargamer said:

/me shakes head disapprovingly in shared disbelief

[TopWargamer]

10 minutes ago, Bubblewhale said:

Well Sharp wasn't going under or higher, so this is out of the ordinary. 

I expect the stock price to raise up the next day...

Funny how the Gizmodo news page has a picture of workers putting GPUs together....Sharp made GPUs?

 

-snip-

Giz is really dumb tbh. I keep them in my feed for the lulz.

[Clyne]

4 minutes ago, TopWargamer said:

Giz is really dumb tbh. I keep them in my feed for the lulz.

Most of the time i'd go to The Verge for the news, sometimes Giz doesn't know what their doing. 

[zMeul]

@TopWargamer you should update the title

latest news puts the deal on hold after SHARP's shares declined 14% after the initial announcement

http://www.bloomberg.com/news/articles/2016-02-25/sharp-agrees-to-6-2-billion-bailout-from-foxconn-nikkei-says

Quote

Just hours after winning a board vote to take control of Japanese electronics maker Sharp Corp., Taiwan’s Foxconn Technology Group said in a surprise reversal that it would postpone signing a definitive agreement because of “new material information.”
Under an agreement announced by Sharp, Foxconn would get control over the company by spending 484.3 billion yen ($4.3 billion) to buy additional shares. The Taiwanese company said it won’t finalize a deal until the situation with the new information is resolved.
Foxconn’s response cast uncertainty over a deal that Sharp had outlined in detail just hours before, and was seen as a sign of Japan’s growing openness to foreign acquisitions. The board of the century-old consumer electronics maker had to choose between Innovation Network Corp. of Japan’s plan to restructure by spinning off businesses, or staying whole under a foreign parent. Foxconn, the main assembler of Apple Inc.’s iPhone, is aiming to take over one of the largest suppliers of screens for phones and tablets. 
“That puts the entire deal in jeopardy,” Atul Goyal, an analyst at Jefferies Group LLC, wrote in a report.

 

my guess? japanese investors are quite unhappy with the deal and dumped their shares in bulk

[zMeul]

update on the deal: http://www.reuters.com/article/us-sharp-hon-hai-idUSKCN0WN0C4

Foxconn reduced the offer by 100bil, from 489 billion yen 

Quote

 

Taiwan's Foxconn is likely to reduce its capital injection into embattled Japanese electronics firm Sharp Corp (6753.T) by around 100 billion yen ($898 million), from an initial plan of 489 billion yen, Japan's Jiji News reported on Monday.

 

Last month, Sharp said it would issue around $4.4 billion worth of new shares to give Foxconn a two-thirds stake, but the Taiwanese electronics company put its takeover bid on hold at the last minute due to what sources said was the discovery of previously undisclosed liabilities.

 

 

[Blake]

On 2/25/2016 at 3:05 PM, TopWargamer said:

 

 

 

Candy crush was clearly undervalued.

 

/s

[PlayStation 2]

We're seriously comparing a semiconductor and electronics corporation to a fucking mobile game.

 

Yep.

 

[Warcony]

I know Samsung was looking to buy Sharp last time around. Maybe they are trying again?