Samsung Electronics has announced it is acquiring Harman International Industries for US$8 billion. The cash purchase of the US-based maker of connected car and audio systems signals the South Korean giant’s push into the auto electronics market in a big way, Reuters reports.
The deal, which is the biggest foreign acquisition ever made by a South Korean company, is expected to conclude sometime in mid-2017. The latest acquisition follows on a US$450 million stake purchase in Chinese EV automaker BYD. Samsung has also reportedly been in discussions with Fiat Chrysler Automobiles (FCA) over a potential sale or partnership for the latter’s Magneti Marelli parts unit, but a deal has apparently been called off.
With an increasing deployment of electronics and software in vehicles, technology companies have been expanding into the sector, which is providing plenty of new business opportunities. Samsung is hoping to capitalise on this growth, quickly.
“We have been studying the automotive market for some time. We conclude that organic growth will not get us where we want to go fast enough,” Samsung Electronics president and chief strategy officer Young Sohn told reporters via a conference call. It however remains to be seen if Samsung will be able to grow into a company able to compete with the likes of Bosch and Continental, according to an analyst.
Harman, which provides infotainment, telematics and connected safety systems as well as security services, are being utilised in more than 30 million vehicles worldwide, and can be found in offerings from automakers such as BMW, Toyota and Volkswagen. Aside from harman/kardon, which also produces home audio products, Harman has a number of brands in its stable, including Infinity, JBL, Bang & Olufsen Automotive and Mark Levinson.
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i know someone is gonna say this but we can all foresee another explosion from in-car entertainment from samsung…
With combustible henpon and washing machines, they may be diversifying this “feature” to other products as well.
It’s getting old *batman slap anyone making exploding jokes*
Its not a joke, its a “feature”
That’s the reality. When you mention Samsung, explosion automatically comes to mind. What’s wrong with that?
It just goes to show what kind of deep shit they are in interms of image. Hence probably that’s why they want to acquire other well know brands.
A brand take years to build, but a short while to destroy.
but ipong problems never seem to stick cuz of telfon job.
That’s hallmark of a strong brand. It happens in the car industry as well.
Proton recall : shitty quality
Lexus recall : Good proactive customer service
Not fair? maybe…
But this is what a good brand can achieve as they have earned the trust of the client.
Whoa! panasonic will need to acquire Bose.
Panasonic has no need of Bose. It’s banking on battery tech, which it has been quite successful after securing deals to supply batteries to Toyota and Tesla for all battery-related products.
Oh please don’t…
i hope prices drop as well.
When Samsung acquire Harman, it effectively acquire a host of branded home audio products namely Infinity, JBL, Bang & Olufsen Automotive and Mark Levinson. This is a smart way of growing into the premium sector of audio products when you have tons of Cash.
Samsung can see which way the wind is blowing. People in driverless cars are going to be very fussy about in-car entertainment. That market is going to explode.
samsung go and acquire in car entertainment, Google already has a car lah.
What this korean know about handling a premium brand?
It’s not all about the premium audio brands but the Harman in-car entertainment system that is being used by over 30 million vehicles worldwide. When you have the user base, you decide the direction of the market and continue to harvest from that part. It’s about how to make more cash from software, hardly any hardware part.
When korea can “invest” in USA, but not China…
In the article been mentioned Samsung bought equity in Chinese carmaker BYD
Can we have explosive audio system to korean cars please??
Noticed that it only mentions Bang and Olufsen Automotive. Does that mean B&O for home and lifestyle products (including TV) is not part of the deal?
IIANM, they acquired the parent company.
So they should have control over all its brand.
Wow…..Cash!!!
That is one smart wat to spend all the money earned from selling extra expensive gadget.