Rumors of Lenovo's takeover of Sharp's factory are not groundless

More and more news of the ban shows that there is no groundless rumors about Lenovo's merger with Sharp's factory. An executive close to both sides of the talks received an interview with Sharp observation and revealed the insider of the deal's failure. Despite the regrettable end of the cooperation, but also for Lenovo, the harvest is very abundant, the following is the exclusive report of sharp observation:

Lenovo's motives for a sharp Chinese plant have been a bit far-fetched, with Sharp's deteriorating financial position prompting the two sides to come together. Unlike Chinese companies, Japanese family firms are heavily controlled by banks, and long losses have put Sharp's board under increasing pressure to reduce its exports to China's Taiwan Zhangbao, while in the Chinese market it is a move to China's factories.

This is an opportunity for Lenovo, which is known for its mergers and acquisitions. The reason is that Lenovo's smart-TV strategy has been around for a long while, but Lenovo has not turned on smart television. The reason is many, according to Lenovo Group's strategic planning, Smart TV is the PC, mobile phone, flat after the fourth point of exerting force.

Mergers and acquisitions are one of the quickest ways for Lenovo to expand, which is reflected in Lenovo's PC business and server business. Lenovo hopes to put the plan on television, but for Sharp, Lenovo showed sufficient caution, which in some ways saved the fortunes of the sharp Chinese plant, as too much scrutiny gave Sharp a respite and eventually a financial upturn.

Lenovo's caution is not due to Sharp's offer. A core executive close to the talks said the price was tempting, but Lenovo dared not sign it because it was just a superficial offer. For example, sharp may have a lot of foreign debt, which is free of the price.

Sharp owes a lot of money to traditional channels. This seems to be a paradox. The reason is that traditional channel stores often use lengthy payments to make money, and it seems unrealistic for home appliance manufacturers to owe the channel.

This is one of the hidden shady of the Chinese household appliance circle. Traditional stores such as Suning Gome will be in some holiday promotions, and this part of the difference, home appliances manufacturers are required to pay to the store. Therefore, the traditional appliance manufacturers have been to store these practices expressed resistance.

One of the most obvious examples happened to Sharp. August 1, 2008, Gome unilaterally will Sharp's latest 65-inch LCD TV price reduction of 20,000 yuan, so sharp unprepared. Sharp's approach is to suspend the supply of the product to Gome. At that time involved a price difference problem, someone asked Yang, the core of the price difference (each 10000~20000 yuan), the future by the United States or sharp to bear? Yang no positive response.

It is based on the financial figures and the underlying black hole of the petty, the two sides of the merger and acquisition cooperation progress slowly. In the end, the two sides agreed to cooperate and expressed their intention to sign. But Sharp has weathered the toughest financial crisis, and the merger and acquisitions between the two sides have been lost.

Still, Lenovo has acquired the assets it wants. First of all, Lenovo TV's foundry from the crown to Sharp, which means that Lenovo TV and sharp TV division, the two sides in accordance with the same manufacturing standards factory and toward consumers.

In addition, Lenovo received a large number of orders from sharp. A simple example, sharp TV's intelligent module is Lenovo development or collaboration with Lenovo Research and development. In addition, Sharp TV's software, UI interface design are associated with Lenovo.