Samsung has once again decided to expand its activities across technologies related to the automotive industry, but also the production of consumer electronics and audio systems. The company has revealed its plans to acquire Harman, which it informed us about last November. The South Korean giant will buy Harman International for $8 billion.
Samsung is now opening another door not only to the automotive industry, in which it could compete with, for example, Tesla in the future. The largest retailer of consumer electronics will thus own all the brands under Harman - AKG Acoustics, AMX, Crown Audio, Harman/Kardon, Infinity, JBL, JBL Professional, Lexicon, Mark Levinson, Martin, Revel, Soundcraft and Studer. However, according to some investors, the price is too low. Some took it so seriously that they even filed a lawsuit directly against Harman's CEO, which luckily had no effect on the outcome.
The completion of the entire acquisition is only subject to approval by the antimonopoly authorities in the USA, EU, China and South Korea. However, the biggest problem is the European Union and China. In these markets, Harman products are sold the most and, according to some analysts, it could be about dominating the market.
Harman more than an audio manufacturer
Throughout its existence, Harman has not so much been associated with audio as with automobiles. Either way, this is Samsung's biggest acquisition ever, and it has really big ambitions. About 65 percent of Harman's sales -- totaling about $7 billion last year -- were in passenger car-related products. Among other things, Samsung added that Harman products, which include audio and car systems, are supplied in approximately 30 million cars worldwide.
In the field of cars, Samsung behind its competitors - Google (Android Car) a Apple (AppleCar) – really lags behind. This acquisition could help Samsung to be more competitive.
"Harman perfectly complements Samsung in terms of technology, products and solutions. Thanks to joining forces, we will once again be a bit stronger in the market for audio and car systems. Samsung is an ideal partner for Harman, and this transaction will offer truly tremendous benefits to our customers.”
