Samsung is one of the top brands in the consumers’ electronics sector. It is the largest mobile phone maker in its home market of South Korea, and the third largest in the world. They also supply all kinds of home appliances, applying the latest technological innovation. After the big controversy that surrounded the brand when they released the Samsung Galaxy 7, another scandal brought the company’s name out of the open when Vice Chairman of the Samsung Board Lee Jae Yong is arrested on bribery and corruption charges. For every bad controversy, a good one surfaces. That is when Samsung announced last Saturday that their Harman International Industries Acquisition has already been completed.
Harman Kardon is a division of Harman International Industries and manufactures home and car audio equipment. Samsung is excited to have the collaboration with HARMAN as both brands are of top preference for Original Equipment Manufacturer (OEM). President and Chief Strategy Officer of Samsung Electronics, Young Sohn, stated “Today is a historic moment for us. The close of this transaction opens the door to create substantial growth opportunities and deliver greater benefits for customers worldwide. We see transformative opportunities in the car — and a future which seamlessly connects lifestyle across automotive, home, mobile and work.”
This merger agreement annotates that each HARMAN stockholder will be receiving $112.00 per share in cash. They envisioned the partnership to deliver the best audio and visual performance as both brands are at its best according to their category. This is a dynamic turn for the company as this can be avenue for them to widen their scope and offer more, and better, products to the public. The two brands are aiming to penetrate the world of automotives, as the products are well-suited to their offerings.
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Samsung provides HARMAN with the scale, platform and complementary technologies to accelerate growth and extend our global market leadership in automotive, smart audio and connected technologies. With this acquisition, HARMAN now ceases to be a standalone company; rather, it is now known to be a subsidiary of Samsung, manufacturing exclusively to its mother brand. Samsung is retaining HARMAN’s board of directors, staff, and facilities – even its consumer brands. As Samsung assumes responsibility for its 30,000 employees, the company also takes hold of the sub-brands like Lexicon, JBL, Infinity and Mark Levinson.
“Recognizing the importance of partnerships in an increasingly connected world, particularly in automotive, we are poised to leverage our combined teams and resources to produce even greater value for our customers,” Paliwal concluded, “Working closely with automakers and other technology companies, Samsung and HARMAN will define — and drive — the future of automotive.” This will be an interesting partnership to look forward to. With Samsung’s superior video elements and HARMAN’s prowess with audio perfection, the combination of the two will be historic. As to the marketing force, HARMAN is assured of proper sustenance in terms of production efficiency and exposure factor. Samsung has never failed to go below than being one of the top performers; who knows, future projects might end up being one sitting on the top.