There are a lot of changes going on over at Samsung following the disastrous Note 7 launch, and today it seems that the South Korean company is actually considering selling its PC business, as per this report. Here are the details.
According to the report, the Korean firm is in talks with Chinese company Lenovo about a possible sale of its PC division. Lenovo is another huge PC manufacturer in terms of shipments. Sony was one of the first companies to sell its VAIO PC segment back in 2014. In this case, International law firm Paul Hastings is reported as representing Samsung in the talks, which is otherwise going for months without much progress, while Lenovo is using Freshfields Bruckhaus Deringer, as per the news outlet The Bell.
Also suggests that Samsung is carrying out talks without a financial advisor, but rather hired US-based law firm Paul Hastings as a legal one and the deal price could be worth more than 1 trillion won. Expected to be valued at more than US$850 million and there’s no guarantee that a deal will be reached.
A former Samsung executive was quoted as saying: “Considering the close business relationship between PCs and printers, it seems quite obvious that Samsung, after its PC business sell-off, is withdrawing from the PC market.”
This isn’t the first time Samsung is shipping its part of the business to another, which follows the recent decision to sell its printing business to HP for more than $1 billion as part of its attempt to shed less profitable parts of its arena.
Lenovo, on the other hand is the world’s largest PC maker in terms of shipments, so it would make sense for Samsung to be talking to the firm if it really is considering a sell-off of the PC division. As we can understand how much loss Samsung had with the discontinuation of Galaxy Note 7, about 3-trillion won ($3.1 billion approx.).
At this point, nothing has been confirmed, and got no exact timeline on when Samsung shipping its PC business into Lenovo, so take this news with due caution and a pinch of salt.
(Source: The Investor)
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