Samsung Display Secures 7.4% Stake in Corning, Expands Gorilla Glass Partnership
October 23, 2013 10:19 AM
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Deal is worth $1.9 billion
Corning is a company that has its fingers into all sorts of products. Perhaps one of the products the company is best known for in the tech world is the
that covers the LCD panels of many smartphones and tablets on the market.
Corning and Samsung have jointly operated Samsung Corning Precision Materials Co. Limited (SCP) – which manufactures LCD glass in South Korea -- with Samsung Display having ownership of 43 percent. With today’s announcement, Corning will assume full ownership of SCP.
The deal will net Samsung $1.9 billion in Corning convertible preferred shares, giving it 7.4% ownership in Corning if converted.
“The agreements provide important financial and strategic benefits to both Corning and Samsung,” said Wendell P. Weeks, chairman, chief executive officer and president of Corning.
“We look forward to concentrating our efforts and combining our expertise in product development with Corning’s renowned leadership in glass technologies to develop new market opportunities in consumer products and other industries,” added Kinam Kim, president and chief executive officer of Samsung Display.
The deal also brings with it a long-term LCD display glass supply agreement between Corning and Samsung Display that will run through 2023. Corning's board also authorized an additional $2 billion in share repurchases throughout December 31, 2015.
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10/23/2013 12:49:27 PM
The point is that Samsung is making a play to control the market for the glass used in smart phones and tablets. You don't really expect them to stop at 7% do you? Give them a few more years and they will own 50.1% of the company and be able to cut off Apples supply of gorilla glass. That means that Apple will be forced to find an alternative and there simply isnt an alternative available. Since Corning owns the patents that affect Apple, the only option Apple will have is to use glass that breaks easily or develop something like transparent aluminum.
Its a pretty smart move on their part and its a way for them to force Apple to stop the idiotic patent trolling that they have been doing for the last 10 years or so.
10/23/2013 1:32:12 PM
It makes corning a 10 billion a year company. I don't think a 7.4% stake holds much water in determining the supply of glass or in South Korea. I do think it is a shot across the bow of apple on sapphire display covers however.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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