Universal Display tumbles on report Samsung buying Novaled

|About: Samsung Electronics Co., Ltd. (SSNLF)|By:, SA News Editor

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.