Corning buys out Samsung's stake in LCD joint venture; ten-year supply deal inked
Samsung has acquired a 7.4 percent share in smartphone Gorilla Glass maker Corning, as part of a "strengthening" in the partnership between the two companies. The deal will also see Corning taking full control of Samsung Corning Precision Materials, an LCD panel joint venture in which Samsung currently holds a 43 percent stake. Samsung will make an additional investment of $400 million in Corning by subscribing to new convertible preferred shares, today's press release states.
In return, Samsung will get $1.9 billion worth of convertible preferred shares in Corning, equal to a 7.4 percent stake in the company. At the same time a ten-year new supply agreement between the two has been inked, adding around $2 billion to Corning's annual sales.
Corning's Gorilla Glass is used in many high-end mobile devices, including those of Samsung's competitors — and today's news may be of concern to the company's smartphone rivals, many of whom are already reliant on Samsung for other components.