The ailing Japanese group picked a Taiwanese takeover over a domestic bailout. A $4.4 bln equity injection by the iPhone assembler shows Japan’s doors are not always closed to foreign buyers. Offering Sharp many safeguards helped. Now Foxconn has to make this pricey deal work.
The Taiwanese handset maker is losing market share to flashier rivals like Apple and Xiaomi. The shares are down 90 percent in two years. It posted a quarterly loss and may sell some factories to save cash. An outright takeover might seem logical, but while HTC’s products are attractive, the valuation is not.