Samsung Electro-Mechanics is looking to sell its wireless communication business and numerous parties have shown an interest in acquiring it. According to a recent report from South Korea, a total of nine companies have lined up as potential buyers for Samsung Electro-Mechanics’ wireless business ever since the Korean tech giant has put it up for sale, but now there are only two contenders left.
Only one of these two unnamed companies will come out on top in this race and the preferred bidder should be revealed before the end of November. According to KB Securities analysts, Samsung Electro-Mechanics is asking more than 100 billion won ($89 million) for its wireless communication business.
The buyer could get the rights to sell Wi-Fi modules to Samsung Electronics
The buyer will not only acquire Samsung Electro-Mechanics’ Wi-Fi business but also over 100 of its current employees. In addition, the deal will likely allow the buyer to then sell Wi-Fi modules to Samsung’s own mobile business. This seemingly is a great prospect for potential buyers as they would not only acquire the business itself – and its employees – but also one of the biggest clients in the mobile segment.
As for the reasons why Samsung Electro-Mechanics wants to sell its wireless business division, they remain somewhat vague but they may have something to do with Samsung Electro-Mechanics failing to turn a profit from selling Wi-Fi modules to its sister company. Either way, the wireless business division covers only around 10% of Samsung Electro-Mechanics’ sales, so a large chunk of the company will remain intact after the deal concludes.
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