Foxconn and Sharp Announce $3.5 Billion Takeover Deal

Foxconn has officially agreed to takeover Sharp, paying $3.5 billion for a 66% share in the company. That number is significantly lower than the original $5.8 billion deal which was put in jeopardy by $2.7 billion in undisclosed liabilities

Today both Foxconn and Sharp are pleased to announce the historic strategic alliance of two global technology leaders. The culture of both of our companies is defined by hard work, creativity and innovation. We are committed to restoring profitability and strengthening operations to once again make Sharp a leader in the global electronics arena and a world-class company with a positive outlook. Both our teams are on the same page working towards the same goal.

Terry Gou, Founder and CEO of Foxconn, said, “I am thrilled by the prospects for this strategic alliance and I look forward to working with everyone at Sharp. We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights.”

Kozo Takahashi, President and CEO of Sharp, said, “I am pleased with our decision today to form a strategic alliance and merge both forces between Sharp and Foxconn to accelerate innovation with the “creativity and entrepreneurial spirit” of both our companies.”

Foxconn is likely hoping that its acquisition of Sharp will lead to increased orders from Apple and other large companies. It will be competing with LG, Samsung, and Japan Display.

The tables below provide additional details about the investment.