- Lenovo is already the world’s largest PC maker
- The deal is estimated to be more than 1 trillion won ($850 million)
- Samsung sold its printer business to HP earlier this year
Earlier this year Samsung announced that the company will be selling its printer business to HP. As per reports, this might not be the only business that the company is planning to sell as the company is said to be considering the sale of its struggling PC business to Lenovo.
The South Korean company is currently in talks to sell its PC business without having hired a financial advisor, as per a report by a local news publication The Bell (via The Investor). However, the company is believed to have hired Paul Hastings as a legal advisor. Lenovo is reportedly being represented by Freshfields Bruckhaus Deringer.
Even though there is no confirmation regarding the deal or its value, The Bell has estimated that the deal can cost Lenovo more than KRW 1 trillion (roughly $850 million). Interestingly, the report says that the talks have been going on for months without much progress to show.
“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 reportedly said.
Lenovo is already the world’s largest PC manufacturer and in May, the company reported a 20 percent rise in revenue for fiscal year ended March 31. However, the revenue from the company’s mobile business, which increased 71 percent year-on-year to $9.14 billion, contributed heavily to its performance.