Qualcomm Agrees to Invest $120 Million in Sharp?
Qualcomm has reportedly agreed to invest up to ¥9.9 billion ($120.4 million) in Sharp via a series of capital injections, reports the WSJ.
Sharp plans before year-end to issue ¥4.9 billion in new shares to Qualcomm at ¥164 ($1.99) a share, a 5.7% discount to Tuesday's closing price of ¥174, the Japanese company said. After that initial investment, Qualcomm would hold a 2.6% stake.
Qualcomm agreed to make a second injection of capital, not to exceed ¥5 billion, before Sharp's fiscal year ends in March. The terms were undecided.
According to the report, Sharp and Qualcomm will work together to develop displays using new Sharp LCD technology and Qualcomm's low-power-display technology.
Sharp has also been looking for additional capital from Foxconn, Intel and Dell. A recent deal with Foxconn didn't happen due to the company's tumbling stock price; although, talks are still ongoing.
Apple is also said to have bailed out Sharp to keep its factories operational.