Cash-Strapped Sharp Eyes Spinoff Of Mobile Display Unit Amid Fierce Competition

Sharp, the maker of Aquos HDTVs and other electronics, is facing some tough choices as begins the restructuring process. One of those choices may be whether to spin off its display business entirely.

A Sharp spokesperson has indicated to Reuters that it is considering multiple options and didn’t confirm that a display spinoff is on the horizon. Sharp has denied that a spinoff is a possibility in the past. The company is known to have suffered losses in recent years, however, and multiple reports suggest that a spinoff could be on the table.

Sharp is struggling and is looking for ways to turn around - a move that might result in its display business being spun off

If Sharp spins off its display business, a Japanese government-backed group, Innovation Network Corporation of Japan (INCJ) might step in with an investment of as much as 100 billion yen. The purpose of the INCJ is to promote the competitiveness of Japanese tech companies globally.

Sharp has struggled with falling LCD panel prices and competition from INCJ-backed Japan Display, which also makes mid-size displays and displays for smartphones. Sharp will likely need to firm up its decisions by May.

Via:  Reuters
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