Things might be finally turning around for Sharp. The struggling electronics manufacturer has been losing money throughout 2013 in the heat of tough competition from other Japanese and Chinese companies. From its business year to March 2013, Sharp predicts a net loss of $5 billion. In a turnaround effort, the company plans on cutting approximately 10% of its workforce. In the past, other revival deals such as with Lenovo have been attempted, but a deal with such a large and successful company as Samsung seems to be very promising.
A deal centered around a supply of LCD televisions between Samsung and Sharp is an interesting move considering the history of the two companies. In a three-year bout from 2007-2010, "each company had brought lawsuits against the other in the U.S., Japan, Korea, and Europe" over "LCD patent infringement disputes." But now that seems to be behind the two companies, since Samsung is willing to purchase LCD displays from its previous rival. However, the deal is being made from a very hands-off approach. Samsung declared it wanted "no involvement in Sharp's business management in any way of form." Even so, simply the rumors of such a deal rocketed Sharp's shares 17%, forecasting a very positive future for the deal.
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