Hon Hai’s Sharp Plans to Take Back TV Brand License But Hisense Wouldn’t Let Go

28 Oct

Following Hon Hai’s takeover of Sharp, Chairman Terry Guo called for restructure of the company while regaining Sharp’s international brand awareness. Therefore, the company’s vice president Cheng-Wu Dai reportedly sought to buy back Sharp’s brand licenses in Europe and America. However, the plan seems to have hit roadblocks. Sharp’s America-based brand license is currently owned by Chinese manufacturer Hisense Co., Ltd, which has no intention to give up the right to use the brand.

Hongxin Liu, president of Hisense confirmed to Chinese media that Sharp attempted to buy back the America brand license it previously sold to the Chinese multinational white goods and electronics manufacturer. He also told the media that Sharp has been trying to reach out to Hisense through varied approaches. However, Hisense’s management of Sharp’s brand is on track and the company rigorously follows the contract. Therefore the company has no plan to give back Sharp’s brand license. Hisense acquired 100% of Sharp’s Mexico-based plant stake, asset and America-based brand license excluding Brazil with US $23.7 million (NT $750 million).

In fact, Chen-wu Dai mentioned the vision of promoting Sharp on a global basis following Hon Hai’s investment in Sharp. Therefore, the company continued to restructure while resuming its brand licenses from around the world. For instance, Sharp jointly launched Sharp Corporation (Taiwan) with Sampo in the past. But the two companies decided to terminate Taiwan-based company and agreed that Sharp’s Taiwan-based brand will be directly managed by Hon Hai.

Over the past few years when Sharp was in deep water due to poor financial status, the company’s brand awareness in both America and Europe slid too. In order to realize Guo’s plan of “boosting Sharp’s brand awareness,” Dai hopes to regain brand licenses of Sharp. Currently, Sharp intends to buy back the brand license it sold to Universal Media Corporation (UMC) back in 2014, reported Japanese media. In addition, Sharp announced that it has signed agreement with UMC. By investing in UMC, Sharp will jointly expand business while developing new ones with UMC. The strategic alliance will also boost the company’s global deployment in European market.