Foxconn’s planned takeover of Sharp, to allow it to begin making displays for iPhones as well as assembling them, is reportedly back on track.
First reports of Foxconn’s interest in purchasing Sharp’s display division emerged last September, when it was reported that Apple would come on board as an investor. Foxconn made a $5.3B bid in January, and it was initially reported that the deal had been concluded last week.
That report was thrown into doubt by Sharp’s potential liabilities, reports saying that Foxconn’s acquisition team “went beserk” when they learned of them at the last minute. But the WSJ today reports that both parties are now “optimistic” that the deal will go through.
The two companies aim to seal a near-US$6 billion deal early next week after one more round of negotiation, the people said. Foxconn and Sharp are optimistic that the Japanese company’s recent disclosure of an additional ¥350 billion in contingent liabilities or potential financial risk, won’t derail the deal, the people said.
A Foxconn spokesperson said that both companies were working hard to reach a satisfactory deal.
There has still been no clarification on whether or not Apple is participating in the investment.