Apple Supplier Foxconn to Acquire Sharp for $6.2 Billion [Updated]

[cube]

They are also acquiring a very well known and respected end-user brand.

 

[2457282]

Well, they're doing what any company with their resources would do. Move down the supply chain where the margins are higher.

And yet Apple is not doing so???

I mean, why does Apple not buy out Foxconn and other suppliers so they could control their supply chain better. Could implement better green policy; better Human Capital policies; reduce the leaks; etc.

Obviously there is liability issues and management issues that come along with gobbling large companies, but why are others doing this and Apple does not? I am interested in their thinking and approach that seems to have worked to date.

 

[macs4nw]

.....Not really. Doesn't matter how innovative and forward thinking you are, there's always someone who can buy you out......

While that's true of course, it's a separate issue. In the case at hand, Sharp was on shaky financial ground, having incurred a $1.9 billion net loss in the fiscal year ending March 2015, and owing a further $4.3 billion it had borrowed by March, all of which making them a target ripe for take-over.

.....Look at Budweiser. The largest brewer in the world and they were bought out by a smaller brewer.

If you're talking about the 2008 merger with InBev, the latter already was a mega-sized player after having been formed in 2004 following the merger of Interbrew and AmBev, each already significant players in their own right before that merger.

Any financially healthy company desperately wanting to ward off a hostile takeover can always take a 'poison pill'.

 

[CFreymarc]

I have been in the middle of acquisitions of Japanese companies. Their accounting system of profit and loss is bizarre. To many Japanese, bluntly stating a loss on a spreadsheet is a rude insult.

Any failure or loss is gradually presented in multiple forms, paper work, statements and nearly endless manger approval where no one can be found individually responsible.

For Foxconn to hold off on this over hidden liabilities is no surprise.

 

[SlipperySlop]

Wow, didn't see that coming.

I did.

Interesting acquisition with interesting possibilities for all parties.

Agreed. But what are some of those possibilities?

Foxconn should just make their own phone and cut out Apple. They're getting middled.

I believe Foxconn is the dumbest name for a company I've ever heard. They would do so much better with a different name.

Oh boy, how times have changed

Times always change and will continue to do so.

Who knew Sharp was getting dull this whole time?

There must be a way to sharpen up Sharp.

So, no more Sharp TV?

How about Foxconn TV? No. Sounds terrible

wow, that just says so many things.

Like what?

 

[Mr Kram]

Like what?

like they made a **** ton of money from apple.

 

[bladerunner2000]

I believe Foxconn is the dumbest name for a company I've ever heard. They would do so much better with a different name.

How about 'Apricot' ?

 

[9052042]

I did.


Agreed. But what are some of those possibilities?


I believe Foxconn is the dumbest name for a company I've ever heard. They would do so much better with a different name.


Times always change and will continue to do so.


There must be a way to sharpen up Sharp.


How about Foxconn TV? No. Sounds terrible


Like what?

Do you feel compelled to reply to every comment on this thread? Must be hard having that disease.

 

[campyguy]

I believe Foxconn is the dumbest name for a company I've ever heard. They would do so much better with a different name.

Like Schwing Pump Trucks? No, taken already. How about Beaver Bolt? Oops, sorry. Hold it - how about Ohuhu? Crap, that one's already lined up too. Blekko might be free now that they're part of IBM...

 

[astroboy888]

No because Sharp doesn't make OLEDs. Apple is still stuck with either LG or Samsung if they start using OLEDs.

Um ... Sharp makes IGZO OLED. They have been demoing the technology since 2014.

 

[B4U]

I did.


Agreed. But what are some of those possibilities?


I believe Foxconn is the dumbest name for a company I've ever heard. They would do so much better with a different name.


Times always change and will continue to do so.


There must be a way to sharpen up Sharp.


How about Foxconn TV? No. Sounds terrible


Like what?

Fox, usually implies something like a scheme to scam someone.
Con, about the same...
So, I don't know if I would want to buy a product with such brand name...

 

[wordup60]

http://www.ft.com/intl/cms/s/0/5e992146-db79-11e5-a72f-1e7744c66818.html#axzz41GBFKw5c

Talks for Foxconn’s $6bn takeover of Sharp have stalled after the Apple supplier postponed signing a deal only hours after the ailing Japanese electronics group agreed to the sale of a controlling stake.