“Sharp has confirmed that it has agreed to a much-speculated deal with Samsung that will see the mobile firm invest 10.4 billion yen (around $112 million) to buy a 3.08 percent stake in the company and gain greater access to its display technology,” Jon Russell reports for TNW.

“‘The purpose of this [deal] is to build up mutual trust relationship toward increase in the corporate value of Sharp and Samsung Electronics in the field of liquid crystal display business, and at the same time to enhance Sharp’s capital adequacy,’ a statement announcing the deal reads,” Russell reports. “The deal is a significant one since it indicates a shift in power towards the smartphone space. As the New York Time’s Digits blog noted, Samsung could help Sharp reduce its dependency on Apple and increase the efficiency of its panel-making efforts.”

Russell reports, “Sharp has seen its financial health decline severely over the past 18 months or so… Last last year it was buoyed when it announced a $120 million investment deal from chip firm Qualcomm, and this is another validation of its business. Another possible investor that is still to commit is Hon Hai, the parent company of Apple partner Foxconn. The two sides have been negotiating a deal that would see the Taiwanese manufacturer take a 10 percent share but, with the deadline to close the investment set for the end of March, Sharp is running out of time, and will hope that this helps bring the Hon Hai deal over the line.”

Read more in the full article here.

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