Pointed questions
Foxconn’s bid for Sharp is a risky attempt to reinvent its business model
AT FACE value, there is little sense in the $5.6 billion proposal by Foxconn, the world’s largest contract electronics manufacturer, owned by Hon Hai of Taiwan, to buy Sharp of Japan. It seems an extravagant price for a debt-laden firm that is bleeding red ink and squandered two previous bail-outs. Terry Gou, Hon Hai’s frugal boss, had the sense to walk away from a previous deal for his firm to invest $800m in Sharp in 2012, after the target’s finances deteriorated sharply.
This article appeared in the Business section of the print edition under the headline “Pointed questions”
From the February 13th 2016 edition
Discover stories from this section and more in the list of contents
Explore the editionDiscover more
Could seaweed replace plastic packaging?
Companies are experimenting with new ways to reduce plastic waste
Has Sequoia Capital outgrown its business model?
Venture capital’s hardiest perennial gets back to its roots
On stupid rules and quick wins
Why every boss can benefit from asking employees what most infuriates them
TikTok wants Western consumers to shop like the Chinese
It still has some convincing to do
Will the trouble ever end for Volkswagen and its rivals?
From strikes to Trump tariffs, calamities abound
After Northvolt’s failure, who will make Europe’s EV batteries?
The continent looks ever more reliant on Asian producers