On the program.
How did this deal come together?
First, it is really nice to hear from you again.
This deal came together over the last year as both samsung and corning sought for the best way to make use of some of the new innovations we have been working on, many of which you have seen.
I certainly have.
Lcd is certainly a more mature part of the business.
Explain how that fits into some of the new innovations that you showed me when i was up there last march.
Well, with this transaction it really strengthens our technical glass business.
It simplifies our go to market model and we will now own 100% of our global fusion assets, lowering the cost and the cap ask while maintaining our relationship with samsung in the form of a 10 year long-term supply agreement, as well as some to technical collaborations that are aimed exactly at some of those new innovations that you had a chance to work with when you visit us here.
We are showing viewers right now some of the stress test that you put on the gorilla glass.
As i think about this deal, frankly i am stunned, admittedly, the samsung was willing to give up so much money, 20% earnings, a lot of money, taking what is effectively a share of the company that is convertible preferred.
They could wind up owning 7.5% of corning.
How do you feel about that?
We feel pretty good about the transaction.
As you point out, it is great for our shareholders, but it is also good for samsung.
What they did is they had half of an lcd only korea only venture and they wanted to be able to participate in the overall growth of the drives from the other innovations, allowing them to be long-term investors, capturing the full value of our portfolio rather than just the more narrow robotic focus they had previously.
You know who also made the point when we were up there walking around in march, the point that the lcd business counts for about one third of earnings and is more mature.
Because of that you had worried that investors were not ascribing the premium multiple that they once did.
How does this deal address that?
In a number of ways.
First and foremost, with 20% accretion, adding $2 billion in revenue, 300 and $2 billion in net income and free cash flow, that goes a long way to helping capitalize the stock.
In addition to that, these are global fusion assets, the same assets that we used to make some of the new products, like a gorilla, as well as willow and a number of other innovations at a very low cost.
It really helps us to jumpstart those as well.
Let's talk about those innovations.
Can you give us a sense of what is in the pipeline right now?
What are you most excited about?
We have a number of cool, new products in the pipeline.
One is new uses for thin and strong glass, whether it is in automotive, architectural, appliances.
Also, all sorts of new material sets for conforming displays.
Making glass strong and making glass thin and flexible opens up a ton of new product opportunities.
Bmw was talking about using new materials.
I know that you do not talk about using new -- talk about new customers, but you did show me a mockup of a sunroof on a car with gorilla glass and it weighs what, 80% less than traditional glass?
That is correct.
And i look forward to driving a car soon with our product on it.
I imagine that you do, i imagine that your shareholders would look forward to collecting that income stream as well.
The other thing i have to ask you about is that gorilla glass was effectively created for steve jobs.
Samsung note -- samsung now uses that same product.
What does this do for your relationship with apple?
Well, we do not talk about specific customers, as you know, but let's talk about customers more in general.
Through this transaction we have enhanced our ability to act independently around the globe.
Samsung does not have observation rights, access to nonpublic information.
Because they understand that the key to us creating value is innovation and that you can only innovate if you are independent.
So, we maintain that pierced the protective independence that we have had for the last 163 years.
As he said before, the stock is up today.
Willow glass is the next generation of gorilla.
What makes willow so exciting?
You have had a chance to handle it.
I think that what makes it so exciting is that glass can become flexible and conformable.
When glass becomes that thin it actually begins to behave like a new material.
That opens up opportunities that we have never really had in our materials set before.
It can now be produced on roll to roll tight processes, like a thin film.
Are you telling me that as i look at my iphone i will be seeing it bending around the edges and maybe it will be glass on both sides?
Once again, i never talk about specific customers, but i do think in your future there will be an all glass device that is so strong, thin, and light that we are able to use all the surfaces to display information as well as the great, cool authentic touch of glass.
Wendell weeks, you are a man who loves your glass.
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