Should Samsung Buy This Longtime Technology Partner?
Digital display technologist Universal Display (NASDAQ: OLED) renewed a long-standing contract with top customer Samsung (OTC: SSNL.F) this week. These partners are getting so inseparable, you'd think the larger business might want to simply buy the smaller one.
So let's imagine that Samsung Display launched a buyout bid for Universal Display right now, instead of simply extending their existing deal for five years. What would that look like?
This week's contract runs until the end of 2027, with an optional two-year extension at the end. The previous five-year agreement was set to expire at the end of December, also with a potential two-year extension to follow. The companies signed a similar deal in 2011 and before that in 2005. In other words, the organizations have a long and stable history together.
Source Fool.com
