After fending off an activist investing firm’s proposal to split up Samsung Electronics, the company may just end up doing so anyways — and that could mean upward pressure on Galaxy S8 pricing.
A source to the Seoul Economic Daily claims that a spin-off will be announced as part of the company’s overall shareholder value enhancement plan tomorrow.
Elliott Management issued a call in October to split itself apart into an operating company and a holding company that can divert more cash to shareholders.
Major losses recorded in the wake of the Galaxy Note 7’s total recall mean that Samsung will need investor morale and capital to back it up, especially as we head towards the launch of the Galaxy S8. What isn’t helping is its apparent link to the graft scandal the South Korean President has been linked to — prosecutors have raided some of the chaebol’s offices.
The swelling of profit motive (or, rather, investor return motive), if it’s true, may not only mean major changes to products in the long-term, but pressure to either sell more Galaxy S8 units — again, we’ll have to see what impact the Galaxy Note 7 explosions have on the brand’s perception — or charge more for them.
The post Under shareholder pressure, Samsung Electronics may split after all appeared first on Pocketnow.
from Pocketnow http://pocketnow.com/2016/11/28/under-shareholder-pressure-samsung-electronics-may-split-after-all
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