Apple has reportedly agreed to buy out the debts of Samsung Electronics Co Ltd’s parent company, Samsung Electronics Display Corp, as part of a $2.4 billion cash deal.
The announcement comes as Samsung Electronics has been accused of paying off debt to its former employees in a series of lawsuits, in an effort to win a deal for the handset maker.
The company has already paid out a total of $1.8 billion in compensation and benefits to the more than 2,400 former Samsung employees, and has promised to repay $1 billion more.
The company said the payments will be made in stages.
The new deal will give Samsung access to cash that it has lent the firm, as well as cash and cash equivalents, in addition to its own cash and short-term investments, the Wall Street Journal reported on Thursday.
The deal also comes as Apple continues to make headway on its acquisition of Beats Electronics, which is currently on hold amid the litigation.