[THE INVESTOR] Samsung Electronics is once again planning to sell its set-top box business after its failed attempt to do so a couple of years ago, according to news reports on June 22.
The tech giant is negotiating with a domestic company over the deal, anticipated to be worth tens of billions of won.
“The two sides want to ink a deal as soon as possible and are in the final phase of negotiations, discussing measures, including severance pay and salary for the current executives and employees at the unit,” an industry source was quoted as saying by the Seoul Economic Daily newspaper.
The tech giant was in negotiation with a French company for sale of the unit in late 2015, but they could not close the deal as they haggled over the price.
The planned sell-off is in line with Samsung Electronics Vice Chairman Lee Jae-yong’s efforts to streamline outdated and less-profitable units while funneling money into promising ones.
The early 2000s was a heyday of the set-top box business as most TVs back then needed the device that converts digital signals to content. The business, however, has been on the downhill with the proliferation of smart TVs.
Samsung’s crosstown rival LG Electronics sold its set-top box division to French media firm Technicolor for 57 billion won (US$51.43 million) last year.
By Kim Young-won (email@example.com)