By Kim Yoo-chul
Samsung Electronics and its affiliates are using mergers and acquisitions (M&A) as a new growth tool, a change of strategy pursued by its Vice Chairman Lee Jae-yong.
Samsung officials said Wednesday that the change is being embraced by its top management in order to better meet the need for prompt adjustment to market uncertainties and demands.
"Vice Chairman Lee wants to streamline the business portfolio by ditching unprofitable businesses and investing in promising areas," said a senior Samsung executive.
Samsung acquired Magna International to boost its battery business.
He added that the world's biggest technology company prefers to acquire small-sized firms before going for large-sized M&A deals such as BlackBerry.
It has taken over SmartThings for the Internet of Things, LoopPay for its mobile payment foothold and Proximal Data for Big Data.
"Recent meetings with Google CEO, Facebook CEO, PayPal co-founder and Microsoft CEO also mean that Samsung is looking for its next big thing.
However, it ditched its unprofitable defense and chemical businesses.
"Samsung is on track to change our corporate nature. We will become an aggressive shopper. Our focus is on how to find the right targets for perfect fits to existing businesses," another executive said.
Samsung Electronics has $56 billion in internal cash reserves.
A transition of power to the third generation is already underway since Samsung Chairman Lee Kun-hee has remained in hospital since last year.
"The key point is how to find, strengthen and develop our own systems for sustainability and that will be come from M&As with the right timing," the company executive said.
In a related note, Samsung aims to create a new ecosystem in its target areas by investing millions of dollars each for venture firms based in Israel and the United States.
"Vice chairman Lee has interests in building up the company's own ecosystem in business areas that the firm has designated. This is why Samsung is investing more for the Tizen mobile platform and for M&As in the Internet of Things," said the executive, adding the company also wants to strengthen its FinTech business.
Samsung Electronics and its affiliates are using mergers and acquisitions (M&A) as a new growth tool, a change of strategy pursued by its Vice Chairman Lee Jae-yong.
Samsung officials said Wednesday that the change is being embraced by its top management in order to better meet the need for prompt adjustment to market uncertainties and demands.
"Vice Chairman Lee wants to streamline the business portfolio by ditching unprofitable businesses and investing in promising areas," said a senior Samsung executive.
Samsung acquired Magna International to boost its battery business.
He added that the world's biggest technology company prefers to acquire small-sized firms before going for large-sized M&A deals such as BlackBerry.
It has taken over SmartThings for the Internet of Things, LoopPay for its mobile payment foothold and Proximal Data for Big Data.
"Recent meetings with Google CEO, Facebook CEO, PayPal co-founder and Microsoft CEO also mean that Samsung is looking for its next big thing.
However, it ditched its unprofitable defense and chemical businesses.
"Samsung is on track to change our corporate nature. We will become an aggressive shopper. Our focus is on how to find the right targets for perfect fits to existing businesses," another executive said.
Samsung Electronics has $56 billion in internal cash reserves.
A transition of power to the third generation is already underway since Samsung Chairman Lee Kun-hee has remained in hospital since last year.
"The key point is how to find, strengthen and develop our own systems for sustainability and that will be come from M&As with the right timing," the company executive said.
In a related note, Samsung aims to create a new ecosystem in its target areas by investing millions of dollars each for venture firms based in Israel and the United States.
"Vice chairman Lee has interests in building up the company's own ecosystem in business areas that the firm has designated. This is why Samsung is investing more for the Tizen mobile platform and for M&As in the Internet of Things," said the executive, adding the company also wants to strengthen its FinTech business.
![[INTERVIEW] With unusual nicknames and backgrounds, MIRAE eyes becoming next big K-pop star](https://img.koreatimes.co.kr/upload/thumbnailV2/618ed220e052496ab77655ad5bbe1c58.jpg/dims/resize/178/optimize)
![[INTERVIEW] Jean-Michel Othoniel's glass garden of enchantment 'is for everybody'](https://img.koreatimes.co.kr/upload/thumbnailV2/23ab8b1dce9543b4b92d5ae550edb579.jpg/dims/resize/178/optimize)
![Afghanistan earthquake killed more than 1,000 [PHOTOS]](https://img.koreatimes.co.kr/upload/newsV2/images/AFGHAN0001_e064cf8b60c94.JPG/dims/resize/268/optimize)
