Samsung Selling Uncomplimentary Businesses To Competitors; Lenovo For PC, HP For Printing
Reports of Samsung and Lenovo being in talks for the sale of the former's PC division to the latter are currently circulating. A South Korean publication has revealed that Samsung has been negotiating with Lenovo for a few months now to close the deal.
Samsung - Lenovo PC Deal Negotiations
The Bell reported that there is no involvement of a financial advisor in the deal from Samsung's side but it has hired a legal advisor, Paul Hastings, for the same. Freshfields Bruckhaus Deringer is reportedly representing Lenovo. In addition, the media outlet said that if the sale is satisfactory and desirable then Samsung will sell its printing division to US tech ace HP, worth more than $1 billion. The deal has already been approved in October.
If the sale of the PC division is successful, Lenovo will have to pay more than $850 million to take control of the Samsung business. "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," a former executive from the South Korean company said.
Samsung Sells Unprofitable Businesses
Samsung has decided to sell the businesses that it finds not complimenting the brand or declining in terms of profits. With the emergence of smartphones, the PC business has been affected adversely. The desktops and notebooks are not performing well enough. The sale of PCs has seen a gradual decline over the past two years. Although the Samsung-Lenovo deal has been in focus for few months now, it is yet unconfirmed if both of them will agree on the terms.
While Samsung is trying to sell some of its unprofitable businesses, it is trying to include new innovative techniques its brand name, Zdnet mentions. Samsung Galaxy S8 will have new AI-basedvoice assistants one Bixby while the other will be its feminine alter ego version Kestra. The special features will enable users to conduct online payment controlled by user voices.