Samsung Buyout Deal WIth Harman For $8 Billion: Joint Forces Great Contender To Apple And Google?
Samsung announced on Monday Nov. 14, 2016 that it will have an all-cash deal worth $8 billion with a US audio company, Harman and it is said that it will be the largest ever acquisition by Samsung. Samsung CEO Oh-Hyun Kwon said in a press release that the merging of the two companies is a perfect combination to have a more improved automotive electronics.
Harman is a manufacturer of auto parts and it is one of the suppliers of infotainment technology. The company is the market leader when it comes to car sollutions with more than 30 million auto parts released. On the other hand, Samsung is a leading expert when it comes to displays, semiconductor technologies and user interfaces and mobile phones. It is said that it would be of great advantage if Harman will be taken by Samsung in order to grow its business.
Harman also owns Harman Kardon, JBL and AKG and people expect that many opportunities will be knocking on Harman if they will make a deal with Samsung.
It was reported that automotive electronics are expected to grow more than $100 in 2025. Samsung is making automotive electronics as one of their strategic priority for the firm according to USA Today. Samsung will be the subsidiary of Harman in mid-2017 but Samsung needs approval from Harman regulators and shareholders first.
It is presumed that in the next five years it would double its revenue if they will merge. It should be remembered that the Fiat Chrysler Automobiles and General Motors Company recently made a deal with the firm according to The Verge. They gained profit approximately worth $24 billion as of June 30, 2016 and there are still many customers who are taking orders from them.
The CEO of Samsung disclosed that Harman gave compliments about their technologies, solutions and products in a press release. The Harman Company on the other hand has confirmed their intention to merge with Samsung and it said that it will be a good extension for them to improve their strategy in dealing with customers.
Samsung is a South Korean company. When it will join forces with Harman, it is said that it will be a good contender to Google and Apple. However, the giant company of Apple announced their plans in building its own electric vehicle early this year. It will develop software for existing automakers.
The Giant Company reminds the public about the 2.8 million top loading machines. The speculation that Samsung and Harman will be joined forces already started after the issue of Samsung Galaxy Note 7.