You are using an older browser version. Please use a supported version for the best MSN experience.

Samsung to Sell Printer Business for $1.8 Billion? (HPQ)

Investopedia logoInvestopedia 11-09-2016 Shoshanna Delventhal
© Provided by Investopedia

The Seoul, South Korea-based electronic giant will potentially sell its printer business to HP Inc. ( HPQ ) in a deal that could be worth $1.8 billion, reports Reuters. The sell-off will reportedly help Samsung shift its focus to core business operations, says the Seoul Economic Daily. 

HP Seeks Investment Opportunities Amid Growth Decline

HP Inc., was created after the company’s break up with Hewlett Packard Enterprise Co (acquisition of Samsung’s printing operations would potentially help lift HP’s falling revenue from its printing business, which declined 14% in the company’s most recent Q3 earnings report, down to $4.4 billion from $5.2 billion over the same period last year. (For related reading, see: HP Inc. Bets on Restructuring Amid Slump.)

Leading South-Korean Manufacturer to Focus on Core Businesses

The Seoul paper, citing an unnamed senior Samsung source, said the electronic giant will announce its decision on the potential sale by next week. Samsung group, a family-run conglomerate, boasts its position as the number one manufacturer of smartphones, televisions and memory chips.

Despite the Korean company’s strengths, its printing business has repeatedly lagged behind that of rivals HP Inc., Canon Inc. (divest or exit from non-core businesses as a part of a broader restructuring process. While the company does not disclose printer sales, global market intelligence firm, IDC, ranks Samsung fifth in the global printer market, representing a 4% market share in the global hardcopy peripheral industry in Q2 2016.

While HP Inc. seeks investments to boost growth, Samsung veers in the other direction, planning to refocus on core businesses and sell off its weaker operations.

More from Investopedia

image beaconimage beaconimage beacon