It is tough to state whether or not Samsung Electronics Co. has BlackBerry Ltd. in its sights; on the other hand it is quite easy to predict the giant Samsung is going to do “shopping”. Actually, Samsung said in an e-mailed statement. “Samsung regards M&A as one of our key business strategies, in conjunction with organic growth, and we continue to remain open to partnership and acquisition opportunities.”
“Samsung is an hardware company caught up in a software revolution,” said Cyrus Mewawalla, managing director at London-based CM Research. “So it needs to make acquisitions.”
63 billion of cash would be enough to takeover top tier huge FMCG firms clearly; in this case the focus will be on the tech industry.
The 190$ billion South Korean conglomerate makes dozens of consumer goods, probably it will need a technology to link all the devices together online, with the aim of creating the futuristic “wireless home”. Such trend started with acquisitions like Novaled AG (2013), a German maker of material to light up a gadget’s screen; MOVL (2013), which has developed a service that allows users to share content between devices such as phones and TVs; or SmartThings (2014), which allows people to sync up their connected gadgets onto a single smartphone app and hardware hub.
Samsung “relationship” with BlackBerry is just an alliance right now but there are rumours about a “proposal”: it proposed buying the Canadian smartphone maker for as much as $7.5 billion. Even so, a takeover would give Samsung the software to help its products communicate, according to Current Analysis Inc. Future potential targets include Atmel Corp. and Freescale Semiconductor Ltd., whose chips help devices talk to each other, said CM Research Ltd.
Other targets that Samsung might consider: Opera Software ASA, a Norwegian maker of Internet browsers for phones, tablets and computers, which has a market value of $1.9 billion; and closely held AlertMe Ltd., a U.K. company that has developed technology to control dozens of devices from different manufacturers on a single network, according to Mewawalla at CM Research.
Furthermore even if Samsung is the world’s 2nd semiconductor maker, it still could make takeovers in this industry to enhance its capabilities. Atmel for example is among chipmakers focusing on the Internet of Things, developing technologies that help machines talk to each other and building wireless-radio capabilities.
Acquisition are not even an opportunity but also a threat: it could be too early for Samsung to invest a consistent portion of its liquidity in the “wireless home dream”.
What this Giant is trying to achieve is a clustering connection of all its existing product but has this strategy also a good fit with the potential change in the Tech industry in terms of demand of new products? Looking at the market vibes we would say definitely yes: The stock has gained 7.5 percent in the past year. In order to give a 100% right answer we have just to wait and see what will happen in the future.
Francesco Forestieri
“Samsung is an hardware company caught up in a software revolution,” said Cyrus Mewawalla, managing director at London-based CM Research. “So it needs to make acquisitions.”
63 billion of cash would be enough to takeover top tier huge FMCG firms clearly; in this case the focus will be on the tech industry.
The 190$ billion South Korean conglomerate makes dozens of consumer goods, probably it will need a technology to link all the devices together online, with the aim of creating the futuristic “wireless home”. Such trend started with acquisitions like Novaled AG (2013), a German maker of material to light up a gadget’s screen; MOVL (2013), which has developed a service that allows users to share content between devices such as phones and TVs; or SmartThings (2014), which allows people to sync up their connected gadgets onto a single smartphone app and hardware hub.
Samsung “relationship” with BlackBerry is just an alliance right now but there are rumours about a “proposal”: it proposed buying the Canadian smartphone maker for as much as $7.5 billion. Even so, a takeover would give Samsung the software to help its products communicate, according to Current Analysis Inc. Future potential targets include Atmel Corp. and Freescale Semiconductor Ltd., whose chips help devices talk to each other, said CM Research Ltd.
Other targets that Samsung might consider: Opera Software ASA, a Norwegian maker of Internet browsers for phones, tablets and computers, which has a market value of $1.9 billion; and closely held AlertMe Ltd., a U.K. company that has developed technology to control dozens of devices from different manufacturers on a single network, according to Mewawalla at CM Research.
Furthermore even if Samsung is the world’s 2nd semiconductor maker, it still could make takeovers in this industry to enhance its capabilities. Atmel for example is among chipmakers focusing on the Internet of Things, developing technologies that help machines talk to each other and building wireless-radio capabilities.
Acquisition are not even an opportunity but also a threat: it could be too early for Samsung to invest a consistent portion of its liquidity in the “wireless home dream”.
What this Giant is trying to achieve is a clustering connection of all its existing product but has this strategy also a good fit with the potential change in the Tech industry in terms of demand of new products? Looking at the market vibes we would say definitely yes: The stock has gained 7.5 percent in the past year. In order to give a 100% right answer we have just to wait and see what will happen in the future.
Francesco Forestieri