Universal Display tumbles on report Samsung buying Novaled


Bloomberg reports Samsung (SSNLF.PK) is close to buying German OLED materials/tech provider Novaled for $200M+. Novaled's CMO says "negotiations are ongoing."

Samsung invested in Novaled in 2011, and the companies signed a licensing/materials purchasing deal in 2012.

Novaled claims its PIN OLED doping tech allows for fewer manufacturing process steps, low driving voltages, and greater design flexibility.

Universal Display (OLED -9.2%) shares aren't taking the news well. Universal remains very dependent on Samsung's materials purchases and (fixed-fee) licensing payments for now. It's counting on expected manufacturing ramps from AU Optronics, Innolux, and LG Display, among others, to help lower its dependence.

Universal's Q2 report arrives on Aug. 8.

Comments (4)
  • carnegielaker
    , contributor
    Comments (140) | Send Message
     
    the selloff in OLED is curious...Novaled is/has collaborated with Universal Display in the past, and the key technology from Novaled is to make the manufacturing process for OLEDs more efficient. Novaled does NOT produce a competitive product to Universal Deplay. If anything, this should accelerate the usage of PHOLEDs from Universal Display...
    29 Jul 2013, 02:00 PM Reply Like
  • sidney
    , contributor
    Comments (366) | Send Message
     
    I agree this selloff is unfounded as Novaled was operating in other parts of the OLED stack. Its actually a further reinforcement of Samsung's investment in OLED as a technology (vs other alternatives). If anything the fact they are willing to acquire an Oled related firms for their tech should be lighting a fire under OLED's valuation as it makes it a potential future buy out target of SMD as well.
    29 Jul 2013, 02:52 PM Reply Like
  • Esekla
    , contributor
    Comments (4469) | Send Message
     
    <sigh> See the comments at the bottom of this article:

     

    http://seekingalpha.co...
    29 Jul 2013, 02:44 PM Reply Like
  • Gumby
    , contributor
    Comments (3550) | Send Message
     
    OLED stock fell as much as $4 or more and I search for news for hours until now.. What is taking this so long? I thought that I get equal access to news as anybody. What gives?
    29 Jul 2013, 04:18 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs