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Samsung might sell its PC business to Lenovo for $850 million

It looks like Samsung doesn’t want to make PC’s anymore; according to a report by South Korea’s The Bell, Samsung has been negotiating with Lenovo about a sale of its PC division for a couple of months.

Samsung very recently announced that Hewlett-Packard would be acquiring its printer division, so a sale of Samsung’s PC was only a matter of time. It seems that Samsung is cutting the fat and would rather build tablets and phones, than the dated laptops and desktops.

Samsung CFG70 Gaming Monitor

The Deal

Details about the deal are pretty scarce at the moment; it seems like Samsung and Lenovo have hired two international law firms as legal advisors – Samsung hired Paul Hastings, while Lenovo has hired Freshfields Bruckhaus Deringer.

Samsung and Lenovo both are massive multi-national companies – an acquisition of this scale requires a lot of legal work, so this makes sense. According to The Bell, the deal could cross the one trillion mark – in South Korean Won, which is about $850 million.

Lenovo

Why would Lenovo be acquiring yet another PC division? It’s probably because Lenovo is currently shipping the highest number of PC units – at 19.2%, they beat HP by a whopping 1.6%.

Lenovo has been making some incredible desktop and laptops – including a few 2-in-1 and All-in-One devices.

While Lenovo has been innovating, Samsung has been stagnating – if Lenovo thinks it could do more, with Samsung’s assets, this could be a deal that benefits both companies.

The Galaxy

It’s unclear whether the recent Samsung blunders with the Galaxy Note 7 have anything to do with Samsung’s decision to give up on their existing markets.

While there are no official figures, it has been estimated that the initial Note 7 recall, followed by the replacement, followed by a second recall, have cost Samsung billions of dollars in loss.

Hopefully, more details would show up soon enough.

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