One of the biggest South Korea-based tech company is reportedly dividing itself into two. The chances of Samsung split news being true are undoubtedly high. It could be related to Samsung’s stock plunging to its lowest share price back in September.
In addition, the company received a great deal of criticism all around the world. China, which is the world’s largest market, for instance, felt that Samsung misled its customers in the country due to Samsung saying that smartphones in the country were somehow not affected by the battery defect.
Samsung Split News Reason
When a massive company finally undergoes an official partition, it’s usually due to the need of reorganizing and bolstering the management structure. In addition, it could also be tied to increasing the shareholder value.
That being said, this solution was suggested by U.S. hedge fund management corporation Elliott Management. The hedge fund happens to own 0.6 percent of Samsung. On the other hand, dividing a large company such as Samsung into two parts, one for operations and the other for ownership purposes also has positive effects.
It could allow for one of the two nearly split company to grow at a much faster pace, while the other works on at a slower rate. With that in mind, it could lift the company off of its current state.
Samsung Split News: Selling PC Division To China
Samsung is a company so big that it accounts for 20% of South Korea’s GDP or gross domestic product. Given that it’s in the midst of struggle, the company will likely ditch its PC business. According to International Business Times, Samsung is in negotiation with Lenovo Group of China at the present time.
With that in mind, Samsung is planning to sell their PC division for approximately $850 million or 1 trillion won. At the present time, Samsung’s PC business is already in retreat. It won’t take long before everyone sees Samsung split, given that the company already halted from selling PCs in the European market back in 2014.