Samsung Electro-Mechanics is reportedly going to sell its wireless communication business. Initially, nine companies showed interest in buying the wireless business of Samsung Electro-Mechanics. Then some bidders dropped out, and now there are only two main players left. So far, the names of the companies remain unknown. Only one of them will receive the prize. Most likely, the outcome will be announced by the end of November.
According to KB Securities, Samsung Electro-Mechanics put a price tag of 100 billion won ($89 million) for its wireless business. It is not clear what exactly prompted Samsung Electro-Mechanics to sell its wireless division. Perhaps the fact that Samsung Electro-Mechanics couldn't profit from selling Wi-Fi modules to its sister company became the decisive factor. After all, considering that the wireless division accounts only for about 10% of Samsung Electro-Mechanics' sales, these changes won't significantly affect much of the company.
It's assumed that the deal will allow the buyer to sell Wi-Fi modules to Samsung's own mobile business. Along with Samsung Electro-Mechanics' Wi-Fi business, the buyer will also receive over 100 of its current employees. The terms of the deal seem to be quite attractive for potential buyers since they can get not only the business itself with its employees but also one of the largest customers in the mobile area.
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