Lenovo is the big dog in the PC business, producing the most PCs of any other PC maker out there. The company is now eyeballing a possible purchase of Samsung’s own PC business which will expand their market reach. Samsung has already sold their printer business to Hewlett-Packard this past year for a $1.05USD billion, which followed the Note7 debacle. Samsung’s PC business is said to be “struggling” and now may be a good time to offload it, especially with the financial hit the company has taken trying to mop up the Note7 mess.
No details of a potential deal have emerged, we only know that Lenovo is interested and Samsung is considering it. Projections made by analysts peg a potential deal would cost Lenovo $850USD million dollars. Samsung has yet to hire a financial advisor in the matter but they have secured legal representation, while Lenovo has secured Freshfields Bruckhaus Deringer to oversee any potential deal.
“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 Samsung executive reportedly said.
Lenovo was profitable over the past year though analysts say the majority of profit came from the mobile side of Lenovo. It will be interesting to see what Samsung does and how they’re restructuring by getting rid of the PC and printer side of their business. Samsung is involved in much more than consumer electronics and you can find them in everything from heavy industries to financial services. Even with the Note7 issues over this past year, you really can’t count Samsung out of the game, when it comes to mobile devices. They’re still one of the most popular manufacturers when it comes to smartphones.
Do you think Samsung will offload its PC business to Lenovo? Let us know what you think in the comments below or on Twitter, Facebook and Google+.Source: Gadgets360