In a recent development, Samsung Electronics Co has agreed to buy Harman International Industries with a staggering $8 billion. Thus making the biggest overseas takeover by a South Korean organisation. Presently by securing Harman, the South Korean brand is calculating to become the go-to provider of everything from in-car entertainment to associated car services. It comes days after Samsung Group beneficiary Jay Y. Lee formally rose to the leading body of the electronic firm, a move that may shore up his impact over the family-run conglomerates prized resource.
Samsung said on Monday, that it would pay $112 a per share in cash for Harman International Industries Inc., a sound pioneer that has performed brilliantly in the automotive world, in recent past. According to Young Sohn, President and Chief Strategy Officer of Samsung Electronics, the company has been studying the automotive market for quite some time. The company concluded that natural development won't get the Korean giant where it needs to go fairly quick. He also added that Samsung will not get into the business of manufacturing cars.
Purchasing U.S.based Harman will help Samsung to achieve the top position of car innovation providers and give it existing associations with BMW AG, Volkswagen AG and General Motors Co. While Harman turned into a big name in top of the line sound equipment, it's pushed further into car supplies and now gets 65 percent of offers from the area.
The famous audio company was founded back in 1950s, when Sidney Harman cooperated with Bernard Kardon to build high-fidelity machines. Later the U.S based company acquired famous audio brands like JBL and Infinity, and became a leader in high-end car audio systems.It additionally possesses the Bang and Olufsen brand for cars in the wake of gaining the business a year ago.