Samsung Sells Their Stake in Sharp, Loses Money


For Samsung, September 2016 is not going to down in the company's history as a positive month. With the torturous Galaxy Note 7 recall ongoing, the South Korean giant continues to suffer. In one weekend alone, the firm lost $20 Billion off of their market value in South Korea, and now, they're having to shed more dead weight. Earlier this month, Samsung got rid of their printer business, selling it to industry stalwart HP, for a little over $1 Billion. This time around however, Samsung is much more secretive, perhaps because the firm has made a loss after getting rid of just 3 percent of Japan's Sharp.

The small stake was picked up by Samsung back in 2013 for $100 Million or so back in 2013, and while that small a stake isn't enough to net them much in the way of returns, it's unusual for Samsung to now make a loss on the stake. Especially since Foxconn purchased the firm three years later, seemingly putting an end to the firm's money troubles. Companies often pick up a stake in their competitors, especially if the two operate in the same space. Having some sort of insurance, or at the very least a foot in the door is sound business acumen. For a time, it was rumored that Samsung's small stake in the Japanese electronics firm was a baby step towards a possible outright acquisition of Sharp. Of course, that didn't happen and now a Chinese giant owns one of Japan's biggest electronics firms. There are no figures to share about the deal, because as the Wall Street Journal reports, Samsung isn't releasing any.

The South Korean firm isn't revealing anything about the deal, not who they sold the stake to or for how much. However, it's taken as fact by many that Samsung has had to absorb a loss on this deal, and that the loss want's large, but a blow to the firm nonetheless. Whether or not the Galaxy Note 7 recall has had anything to do with the recent sales of their printer business and now this small stake in Sharp is unclear, but it is likely the printer deal at least had been in the works for quite some time.

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Former Editor-in-Chief

For years now I've had a heavy interest in technology, growing up with 8-bit computers and gaming consoles has fed into an addiction to everything that beeps. Android saved me from the boredom of iOS years ago and I love watching the platform grow. As an avid reader and writer nothing pleases me more than to write about the exciting world of Android, Google and mobile technology as a whole.

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