Sharp Buys Stake in Pioneer

Two Japanese giants of the flat-panel TV business came together Thursday, when Sharp announced that it had purchased a 15 percent stake in rival Pioneer Corp., thus becoming the company’s largest shareholder.

Called a “Business and Capital Alliance Between Sharp Corporation and Pioneer Corporation” is a company announcement, the deal will lead the two companies to work together in the fields of next-generation video, networking, imaging, and car electronics. The deal, however, is not a full merger, and is not expected to become one.

According to the Wall Street Journal, Sharp is paying the equivalent of $356.7 million for 30 million Pioneer shares; at the same time, Pioneer will buy 10 million Sharp shares for the equivalent of just over $160 million.