South Korean electronics giant Samsung is reportedly in talks with Chinese firm Lenovo to get rid of its struggling PC business division as part of its larger efforts to let go off less profitable businesses.
The world's largest smartphone shipper never really grabbed a worthy market share in the PC domain and has been struggling to stay afloat. Lenovo on the other hand is the largest PC manufacturer in the world in terms of shipments and thus in a strong position to acquire Samsung's PC arm.
South Korean media outlet Bell reports that if talks are successful between the two companies the deal price could be close to 1tn won ($850m, £680m) even though Samsung has rarely revealed the breakdown revenue of its PC business. While Samsung has Paul Hastings as its legal advisor for the deal Lenovo is being represented by Freshfields Bruckhaus Deringer.
Samsung has already stopped selling its PCs in the UK and made an abrupt exit from the European market as well in 2014 owing to competition from other PC giants like HP and Lenovo. It however, still operates in markets like US and other parts of the world and a deal will help Lenovo increase its market share even further in the PC industry.
The latest attempt is in line with the Korean tech giant's efforts to get rid off business that are not bringing enough profits to the table. It recently sold its printer business to HP Inc, the world's largest printer maker for $1.05bn.
"Considering the close business relationship between PCs and printers, it seems quite obvious that Samsung, after its PC business sell-off, is withdrawing from the PC market," a former Samsung executive told the Investor.