Foxconn Gets Green Light From China’s Antitrust Regulator for Sharp Deal

Foxconn Gets Green Light From China's Antitrust Regulator for Sharp Deal

Taiwanese tech giant Hon Hai said antitrust authorities in China had approved its takeover of ailing Japanese electronics maker Sharp, clearing the last obstacle to the drawn-out deal.

The purchase, which was supposed to close last month, has reportedly been held up by China – one of the countries that was reviewing the deal over concerns that it could lead to a monopoly on LCD screens.

Hon Hai gains Sharp’s cutting-edge LCD panel technologywith the $3.5-billion buyout, giving it a 66 percent controlling stake.

“Our application for antitrust review in various regions is completed,” the company said in a statement to the Taiwan stock exchange late Thursday.

“Both sides will carry out the handover procedures as soon as possible according to the contract,” it said.

The announcement fulfills an ambition of Hon Hai founder Terry Gou, whose firm first pursued Sharpfour years ago.

Gou’s company – also known as Foxconn – is the world’s biggest electronics supplier, with Apple a key customer for smartphone components.

But the smartphone giant is squeezing its suppliers as sales of its iPhones slow, dropping 15 percent last quarter year-on-year.

Hon Hai shares slumped in Taipei Friday on weaker-than-expected quarterly earnings.

“From the results, we can see that Apple is pressuring its supply chain on prices,” Fubon analysts led by Arthur Liao said in a note.

Hon Hai said Thursday that its net profit dropped 31 percent to TWD 17.7 billion ($565 million) in the April-June period, the third straight quarterly decline.

It missed the TWD 24.6 billion estimate by analysts polled by Bloomberg News.

Shares slumped 3.69 percent Friday. underperforming the benchmark index.

Analysts are expecting better performance in the third quarter, when Apple’s new iPhone 7 series is rumoured to be launched.

Tags: Apple, Foxconn, Home Entertainment, Hon Hai, Laptops, Mobiles, PC, Sharp, Tablets, iPhones



Baidu’s model ‘deceptive’, Regulator Says in Probe Over student’s death

Baidu's Model 'Misleading', Regulator Says in Probe Over Student's Death

internet giant Baidu, China’s equivalent of Google, have to exchange the way it displays search effects, regulators said Monday, following an outcry over the death of a pupil whose circle of relatives used it to are trying to find a cancer cure.

The ruling through the cyberspace management of China (CAC) calls into query the commercial enterprise model of Baidu, which is quoted at the Nasdaq exchange in big apple and has a marketplacecapitalisation of more than $60 billion (more or less Rs. four,00,438 crores), even after it fell closely in thewake of the scandal.

Wei Zexi, 21, had already been diagnosed with a terminal smooth tissue ailment whilst his spouse and children used the quest engine to locate an experimental immunotherapy remedy at a Beijing health center run through the armed police pressure.

earlier than he died, Wei denounced the company online as “evil” and warned different most cancerssufferersno longer to be cheated” in feedback that went viral, drawing an onslaught of grievance towardsBaidu.

“Baidu’s mechanism for ranking paid consequences depends too closely on price paid and does notclearly suggest paid outcomes, as well as different problems,” the CAC stated in an editorial in its in-house newspaper.

The machineencouraged the impartiality and objectivity of its search results, making it easy to misinformusers, and must be right now rectified”.

In a response posted online, the net company pledged to display “32012fd371b2d8bbf6e5e631dc96cdaf” markers and warnings on advertised content material and restrict the percentage of paid search effectsto 30 percent in keeping with page.

Baidu also pledged to set up a fund of CNY1 billion ($154 million) to compensate destiny sufferers of paidcontent.

for the duration of the investigation duration it had removed 126 million paid results, from 2,518scientific establishments, from its searches, it stated.

‘Reexamine our responsibilities
“The loss of life of Zexi incited a big response from all of society, and has given Baidu tremendousmomentum, triggering all Baidu personnel to reexamine our obligations as a search engine company,”said Baidu senior vp Xiang Hailong.

The enterprise‘s chief govt Robin Li, who is China’s fourth-richest guy really worth $12.6 billion in keeping with the modern Bloomberg ranking, turned into summoned by means of regulators as a part of the probe, reviews said.

Baidu is often visible as China’s equivalent of Google – even though america firm is infrequently an instantaneous competitor as it’s miles blocked on the mainland and terminated maximum of its operations in 2010 after controversy over the u . s .‘s online controls.

seek services accounted for almost eighty four percent of Baidu’s total sales last yr, the business enterprise‘s annual report showed.

maximum of the business came from clients “who pay us a price based on click-throughs for priorityplacement of their hyperlinks within the search effects“, it stated.

Baidu’s beneficial online marketing commercial enterprise has been highly debatable.

The corporation came beneath fireplace this 12 months for promoting the right to control an internethaemophilia forum to an unlicensed private sanatorium, which state media said used the platform for self-merchandising and deleted remarks that challenged its credentials.

In 2011, Baidu changed into forced to apologise after China’s nation tv said fraudulent advertisementshave been posted on its systems, ranging from phoney airline tickets to unlicensed pharmaceuticaladverts.

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Tags: Apps, Baidu, China, Google, net