News hit early this morning that Hon Hai Precision, often simply referred to as Foxconn, had acquired Sharp. Even Sharp thought the $6.24 billion deal was pretty much solidified. Turns out that’s not quite the case. Foxconn reportedly slammed the brakes on the deal sometime Thursday.
According to The Wall Street Journal, Foxconn isn’t yet ready to sign the paperwork that would finalize its acquisition of Sharp. The holdup was caused by new information published by Sharp on Wednesday, which revealed the firm has about $3.1 billion in liabilities that would be owed by Foxconn should the deal complete.
Makes sense: Foxconn probably doesn’t want to drop $6.24 billion just to have some additional liabilities to worry about. It might be able to bargain with Sharp’s board for a cheaper price given the new information.
Ultimately, the deal is in a state of limbo for the moment while Foxconn takes “time to consider,” The Wall Street Journal said. That means the deal could potentially fall apart entirely.