14 DAY TRIAL // Some might not have noticed, but the liquid display market isn't exactly flourishing. Sharp and Sony did realize it though, so they figured they might as well cut their losses.
Then again, that is not a wholly correct statement, since Sony is the only one cutting its losses, more or less. The company is backing out of its partnership with Sharp.
The companies have a joint LCD manufacturing venture called Sharp Display Products Corp.
From June onwards, Sharp will have over 50% ownership of the division. Well, SDP will, its wholly owned subsidiary.
By then, Sony will have sold its 7.04% stake of the issued shares for about $1.25 billion / 1 billion Euro.
Curiously, that is precisely the sum that Sony originally invested in the project, meaning that it will actually not have lost anything in the end.
Once the transaction is completed, Sharp will own 53.5% of Sharp Display Products Corp. The remaining 46.5% will be held by Foxconn (Hon Hai Precision Industry).
Those 46.5% originally belonged to Sharp too, but they were sold to Foxconn in March.