Foxconn will purchase a 66 percent stake in ailing Sharp for about $3.5 billion under a new agreement between the Foxconn and Sharp boards. At press time, a definitive agreement was scheduled to be signed April 2.
The purchase price is down from a previously agreed $5.5 billion, but Foxconn backed away from that deal after learning of $3 billion in previously undisclosed contingent liabilities.
In a sign of Sharp’s financial weakness, the company agreed last July to sell the rights to use the Sharp brand on TVs in North and South America to Chinese CE maker Hisense. Hisense also bought Sharp’s manufacturing plant in Mexico. At 2016 CES, Hisense unveiled its first Sharp-brand TVs.