Samsung Electronics raises close to $900 million by selling stakes in several firms

Samsung Electronics raises close to $900 million by selling stakes in several firms
Samsung Electronics announced today that it has sold stakes in several companies to raise money. An anonymous Samsung spokesman says that the company raised $891 million with the sales. Yesterday, the first lawsuit related to an exploding Samsung Galaxy Note 7 was filed. And while we're sure that the manufacturer carries insurance, it doesn't hurt to be as liquid as possible with such a large number of lawsuits expected to be filed.

The stakes that Samsung sold include a 4.5% holding in semiconductor firm Rambus, 4.2% of data storage company Seagate Technology, and a .7% ownership of electronics firm Sharp. Sammy also jettisoned half of its position in semiconductor masking firm ASML. That sale amounted to 6.3 million shares, which alone was valued at $676 million. Samsung said that selling the stakes doesn't change any relationship it has with these companies.

It has been estimated that the cost to Samsung of recalling and replacing the defective Samsung Galaxy Note 7 units with new ones, will be as high as $1.5 billion. The phablet was officially recalled on Thursday.

source: Bloomberg

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48 Comments

1. Finalflash

Posts: 4063; Member since: Jul 23, 2013

WOW, they don't call this place iPhoneArena for nothing. Selling major holdings in other companies is something that takes place over months and isn't like selling your TV to make a quick buck so you can pay off whatever lawsuit is coming. The linked article from Bloomberg didn't even mention the Note 7 once. How is Alan F. still allowed to work at phone arena? They make no money from this kind of BS because Adblock works wonders. Why not hire actual professionals and try to make money on nuanced and well written sets of articles? I'd actually whitelist this place like anandtech if they actually had decent reviews. Even Anandtech is a bit Apple biased but they do it properly and not like this trash.

3. Bm888

Posts: 517; Member since: Jul 06, 2015

actually I don't think it's about lawsuits but to find money to cushion itself against the cost of note 7 recall...

5. trojan_horse

Posts: 5868; Member since: May 06, 2016

Samsung has more than enough cash to handle the cost of the Note7 recall. Samsung's selling of it's stakes has nothing to do with the Note7 issue. It just happens to be a coincidence, but Samsung was already in talks for the sale of it's stakes long before the Note7 battery issue began.

45. NexusWinner

Posts: 6; Member since: Feb 14, 2016

Hey Trojan_Horse.......How much does Samsung pay you? I've been looking closely at your posts the last couple of months. You say nothing but good things about Samsung, and even have a Note 7 in your picture. Just admit it already, and if you aren't paid by them, I'd apply if I were you.

7. Finalflash

Posts: 4063; Member since: Jul 23, 2013

They have $60 billion in cash....why do they need to bulk up by selling anything other than product?

9. kiko007

Posts: 7493; Member since: Feb 17, 2016

I have to admit.....watching you squirm to Samsung's defense is rather assuming........

17. kiko007

Posts: 7493; Member since: Feb 17, 2016

*amusing

29. trojan_horse

Posts: 5868; Member since: May 06, 2016

There's nothing funny in defending what he believes to be right. Don't you "squirm" to Apple's deffence? Should I call your deffence "amusing" too? That sounds like mockery.

30. Finalflash

Posts: 4063; Member since: Jul 23, 2013

lol, bro, the only thing that makes me squirm, is your mom.

43. sissy246

Posts: 7065; Member since: Mar 04, 2015

Just like you with apple. You beleave in apple he believes in Samsung.

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung has been very secretive about the entire deal. Not only is it not revealing the price at which the stake was sold, it’s also not telling who purchased its 3 percent stake in Sharp. Samsung was believed to have invested this big amount into Sharp because it wanted access to its copier technology patents. However, Samsung has now sold its printing business to HP for over $1 billion and it no longer needs access to those patents which is presumably why it ended up dumping the stake even if it had to take a slight financial hit in the process. The reason Samsung gave for dumping its stake is the same that it gave after it announced the sale of its printing business to HP. The company is restructuring its portfolio to bette

4. trojan_horse

Posts: 5868; Member since: May 06, 2016

Woah, Finalflash. Okay dude, just chill out. But I'm not saying you're wrong, though... But chill, bruh.

6. ctdog4748

Posts: 797; Member since: Mar 05, 2016

As much as you are upset about it, Samsung is freeing up cash, to offset the huge losses from the Note 7 recall Don't like that? Then prove me wrong, post links that reference the timeframe of Samsung's sales, and lets see if the decisions to sell predate the Note 7 disaster.

8. trojan_horse

Posts: 5868; Member since: May 06, 2016

Quote: "Samsung is freeing up cash, to offset the huge losses from the Note7 recall Don't like that? Then prove me wrong..." You should begin by proving your claim. Post links. SMH

11. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Sorry sunshine, your boyfriend will need to post his links first, since he started this comment thread ;)

12. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well, lets see: http://www.reuters.com/article/samsung-elec-cash-bonds-idUSL4N0OX0FU20140616 I'm sure that link is just a lot of big words to you so I'll dumb it down for you. SAMSUNG ..... HAS ..... $60 BILLION ..... IN HAND (if you still can't get it, find an adult you trust to help explain it further).

37. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Your link doesn't even make any sense, since it doesn't address what I ask you to provide; I want the DATES that Samsung decided to liquidate the holdings mentioned in the article, to see how they correlate to the Note 7 disaster. Go ahead, reach out to your highly placed Samsung contacts and get that information.

41. Khyron

Posts: 397; Member since: Sep 28, 2015

Samsung is going to purchase or investoney on Amd or Nvidia

44. trojan_horse

Posts: 5868; Member since: May 06, 2016

@ctdog4748 Quote: "I want the DATES that Samsung decided to liquidate the holdings..." How does what you "want" correlate to your claims of Samsung "freeing up cash, to offset the huge losses from the Note7 recall"? Deflecting much?

48. iushnt

Posts: 3085; Member since: Feb 06, 2013

Read post 42, you got owned.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No they are not "Samsung has been very secretive about the entire deal. Not only is it not revealing the price at which the stake was sold, it’s also not telling who purchased its 3 percent stake in Sharp. Samsung was believed to have invested this big amount into Sharp because it wanted access to its copier technology patents. However, Samsung has now sold its printing business to HP for over $1 billion and it no longer needs access to those patents which is presumably why it ended up dumping the stake even if it had to take a slight financial hit in the process. The reason Samsung gave for dumping its stake is the same that it gave after it announced the sale of its printing business to HP. The company is restructuring its portfolio to better....."

21. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

10. FBIsurveilance

Posts: 43; Member since: Aug 10, 2014

Meh, as soon as I read "paying for Note 7 lawsuit' I know it's Alan F. So yeah, no surprise there. Apparently a typical blinded fanboy was an author in PhoneArena.com. Totally incapable to fathom a business decision where a company is streamlining their operations, offloading investment in units that's not of their core business. Probably selling the printer business for $1 billion to HP was Samsung's way to payoff Apple's litigation, even!

26. htcisthebest

Posts: 435; Member since: Nov 15, 2011

Like I said before, this Alan F guy is definitely a die-hard fan of Apple. A lot of the pro-Apple and anti-Samsung articles in iPhoneArena were written by him.

46. AlikMalix unregistered

Translated FF's post: WOW you're iphonearena because you posted something negative about Samsung. And the fact that you have positive articles about iPhone confirms that bias. (Absolutely ignoring the negatives they post about Apple and praise they posted about Samsung hundreds of times in the past).

2. IAMBLCKJ3ZUS

Posts: 401; Member since: Sep 29, 2015

Honestly the note 7 has no competition. The only thing in its way is itself! It already has better camera than all phones including iPhone 7 plus best display and has s pen. Only thing change this is the surface phone.

22. Doakie

Posts: 2478; Member since: May 06, 2009

I already had sold my Nexus 6P and have an Axon 7 now. But I would very happily buy a refurbished Note 7 to show my support for Sammy. This "bad publicity" probably is bringing me around to buying one.

32. kiko007

Posts: 7493; Member since: Feb 17, 2016

How is the Axon? I thought about getting one, but someone told me the WiFi performance was iffy. How has it been for you?

13. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Really? IphoneArena. This site is as much SamsungArena as iPhone. It's the other OEM's that are left out. Samsung will recover. It's a nasty blemish on this year but they will endure.

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