Samsung Display & Corning sign a new 7-year deal, keeping them linked until 2028
As part of this new partnership, Samsung Display will maintain its ownership stake at Corning until 2028, at the very least. The company will also convert all of its preferred shares into 115 million common shares.
On the flip side, 35 million of Samsung Display’s common shares will be repurchased by Corning. That will give Samsung Display an ownership stage of around 9-percent, in case you’re wondering.
This should increase Corning’s EPS (Earnings Per Share) immediately. It is reported that the initial transaction will conclude later this month, but we don’t know when exactly.
Foldable smartphones are the main focus of their partnership at the moment
Samsung Display and Corning have been working on a number of products, and one of the most notable ones is the UTG (Ultra-Thin Glass) display, for foldable devices. The two companies will probably keep pushing that technology forward.
Foldable smartphones have been expanding their presence continuously, mainly thanks to Samsung. That South Korean tech giant has made the most significant impact in the foldable smartphones space, without a doubt.
Samsung released the most foldable smartphones, and it also holds most of the foldable smartphone market. The company is planning to expand its lineup in 2021 as well, with several more devices.
Do note that Samsung Display has been a Corning investor for quite some time, since 2014, which comes down to the last 7 years.
Rollable smartphones are right around the corner
This partnership has been mutually beneficial for the two companies, so it’s not exactly surprising they’ve decided to prolong it. It remains to be seen what comes out of it in the next 7 years, but the future seems bright for both of them. Foldable smartphones are the current trend, while rollable devices are right around the corner.