2023 was a tough year for Samsung, as its profit dropped 85% compared to last year due to low demand for smartphones and memory chips. However, the company hasn't lost its hopes and is looking to invest even more money to secure its future. One way to secure the future is to acquire promising firms that can extend business in the long run.
Samsung could announce mega acquisitions and mergers in 2024
Samsung Electronics may set out to plan mega-sized acquisitions and mergers this year. Last year, the company acquired eMagin and Roon, but they were small-scale acquisitions compared to what Samsung has achieved in the past. The company's last major acquisition was Harman International back in 2017, and the major audio and connected car technology firm was acquired for $8 billion. Samsung Electronics Vice Chairman JH Han said that the company invested in 260 venture firms over the past three years across AI (Artificial Intelligence), digital health, electronics, fintech, and robotics. To find new growth engines, the South Korean firm also invested in venture firms.
JH Han, Vice Chairman of Samsung Electronics, said, “The business environment will be difficult this year as well, but with a long-term perspective, we will quickly and boldly pursue talent, technology acquisition, and investment to prepare for the future,” during a press conference yesterday. “We have made a lot of effort, continuously collecting and reviewing companies as M&A targets despite a series of unfavorable deal-making conditions, including the COVID-19 pandemic, geopolitical tensions, and global economic downturn,” he added.
The company reportedly wants to acquire South Korean firm Rainbow Robotics, but talks haven't materialized into an acquisition yet. Samsung already owns a 14.83% stake in the robotics firm. The company has made major investments in AI and semiconductor chip designing and manufacturing. At CES 2024, the company unveiled several new AI-powered technologies, ranging from home appliances to TVs and laptops. On January 17, 2024, the company plans to announce the Galaxy S24 series, which will bring on-device AI for several new features.
Have a look at Samsung's futuristic transparent Micro LED TV in our hands-on video below.
