Samsung May Undertake Takeovers to Enter the Market of Internet of Things
Published By : 27 Jan 2015 | Published By : QYRESEARCH
Even if Samsung does not intend on taking over BlackBerry Ltd., it will soon be spending some part of its US$63 billion pile of cash on takeovers in the near future.
Samsung has an alliance with BlackBerry Ltd. and there have been speculations for quite some time now that Samsung would take over the smartphone company. However, reports about any such coalition were denied by Samsung this month. Reports that the company wanted to buy BlackBerry for an alleged amount of US$7.5 billion turn out to be false.
Even so, it is rumoured that Samsung will undertake a few takeovers to make its stand strong in the software division. Samsung, a US$190 billion worth company operates primarily in the field of consumer goods and makes products such as vacuum cleaners, fridge, Microwave ovens, TVs, apart from its well known smartphones. It is in a dire need to have technology or linking its products together so as to make for the connected, online controlled homes of tomorrow.
Other possible companies that Samsung may target include Freescale Semiconductor Ltd. (FSL) and Atmel Corp. (ATML), the chipmakers who help devices communicate with each other.
Samsung started as a hardware company initially and is now caught up in the wave of a software revolution that seeks to transform the way people live by connecting and controlling every aspect of people's lives with the digital world. To survive this wave, it will have to do acquisitions.
Samsung is seeking entry into Internet of Things, a term for a state of digital world where every possible digital device is sewn together and controlled online by electronic devices. The current market of Internet of Things is already flourishing. Analysts state that the market will reach US$7 trillion by the end of this decade.