Samsung Just Gave Sharp $110 Million To Guarantee LCD Supply

Sharp has just announced that it's getting a $US110 million shot in the arm from Samsung. In turn, that will help guarantee Sammy as many LCD panels as it can use.

The sum actually buys Samsung a 3 per cent stake in Sharp — which sounds small but in fact makes it the biggest shareholder that isn't a financial institution (and the fifth-largest stakeholder overall!). In other words, that buys it power and, crucially, access to Sharp's LCD supply. It's expected that Samsung will lap up its 32-inch television screens, in particular.

Sharp had previously been in talks with Taiwanese Hon Hai Precision to strike a similar deal, which fell through when Sharp's share price faltered. Sammy's gain, it seems. [Sharp via The Verge]

Picture: opopododo/Flickr

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