Samsung may be looking to sell its hard drive business after facing repeated losses.
According to a report from Foxbusiness, Samsung Electronics are considering selling off its hard drive division to help raise funds for projects in new areas.
A person close to the matter said that the company are aiming for $1.5 billion sell-out, though will consider offers far below that as well.
“Samsung is considering selling its HDD (hard disk drive) business as it is not strategic to succeed; (Samsung) is neither a follower or a leader in the business and it’s making a loss,” he said. ”$1.5 billion seems a reasonable price to sell. But it could even be sold for under $1 billion as Samsung is trying to get rid of it.”
Samsung had said in May last year that it would invest about $20 billion in new businesses by 2020, including plopping $1.8 billion in bio-pharmaceuticals. In February, Samsung announced partnership with bio-pharmaceutical services company Quintiles Transnational Corp. to setup a health-care in an effort to diversify itself away from consumer electronics.
Samsung holds 11% share of the global HDD business as of Q4 2010, and has been losing money from the business for quite some time.