Samsung has 63 billion dollars in cash reserves, some of which will be used to buy

January 26, foreign media published a Sunday analysis of the article said, whether Samsung Electronics will consider acquiring the Canadian smartphone maker BlackBerry, the 63 billion dollar cash reserves of the company, will be a part of the cash to buy.


, a partner with the BlackBerry, has denied this month that it will spend up to 7.5 billion dollars to buy BlackBerry news. If Samsung buys the BlackBerry, it will help strengthen the links between Samsung Electronics, the market research firm current analyst said.


current market value of 190 billion U.S. dollars in Samsung Electronics, its consumer electronics products cover from mobile phones, televisions to vacuum cleaners, rice cookers and many other products. Samsung Electronics currently needs technology, in the era of wireless intelligent home, through the Internet to connect all the home appliances together. The other acquisitions of Samsung Electronics include wireless chip maker Atmel and Freescale, the market research firm CM Study Ltd said.

"Samsung Electronics is a hardware company that is catching up in the era of software innovation, so the company needs to make acquisitions in the software sector," Selles Mevavalla Cyrus Mewawalla,
CM research analyst in London. "The purpose of the acquisition is to make Samsung Electronics profitable from the age of IoT. IDC, a market-research firm, expects the global IoT market to reach $7.1 trillion trillion by 2020.

"There are many areas of the internet of things from sensing technology to Accessories,"
Samsung Electronics said in an e-mail statement. Together with the company's own organic growth, Samsung Electronics regards acquisitions and mergers as one of the company's main strategies. Samsung Electronics will continue to be open to partnerships and acquisition opportunities. ”


Samsung Electronics bought the smart home innovation company SmartThings last August. The company develops mobile applications that can remotely control appliances. 2013, Samsung Electronics also acquired the German lighting technology manufacturer Novaled, and the smart television application start-up company MOVL.

Neil Shah, Counterpoint Research's equipment and ecosystem study at
, a market-research firm, said that only those deals were not enough for Samsung Electronics. "Samsung Electronics has a vision of how the future things networking industry will develop, but still lacks experience and the ability to connect all the devices together," he said. ”


Competitive Pressure


Samsung Electronics in November 2013, after only 1 billion dollars in the past three years of acquisitions, the future of the company may be in the acquisition of a more aggressive approach. With the impact of products from smartphone makers such as Apple and millet in the market, Samsung's Galaxy series has been declining in the smartphone market and its market share. At the same time, Samsung electronic independent development of the Tizen platform has not gained any influence.

"In the short term, Samsung Electronics will not be able to shake off the pressure from millet and other rivals," said Dan Baker, an analyst at Morningstar in Hong Kong,
Rating Company, Dan Back. From the current situation, Samsung Electronics does not have the advantage of software. ”

"BlackBerry is likely to be an excellent acquisition target for Samsung Electronics," said Shah, analyst at
Counterpoint. "The analyst believes that BlackBerry's instant messaging software can be used to connect Samsung Electronics to consumer electronics products, and BlackBerry has software programs that can control different devices." The BlackBerry's QNX software will also be a great takeover target for Samsung Electronics.


, Shen Zongjun chief executive of Samsung Electronics, said this month that he wanted Samsung Electronics to ally with the BlackBerry rather than buy the blackberry outright. The two companies previously denied Reuters reports that the BlackBerry would be bought by Samsung.


Chip Business


Samsung Electronics is now the world's second-largest chipmaker, but Samsung Electronics is still likely to make acquisitions in order to improve its capabilities.

Samsung's next-generation Galaxy S smartphone could abandon Qualcomm's processors and switch to the company's self-developed mobile processor,
sources said last week. Morningstar analyst Buck believes the move means Samsung Electronics wants more control over the processors in the product. Atmel, a chipmaker based in San Jose, Calif., has a current market capitalisation of about $3.5 billion trillion and Freescale's market capitalisation of about $7.9 billion, which could be the target of Samsung Electronics.


Atmel is an internet-focused chipmaker that develops technologies that allow devices to interconnect and have radio-frequency capabilities. Atmel chips can be used in washing machines, cookware, doors, windows and other products. Freescale's chips are now widely used in areas such as home appliances and space hardware.


as of now, the Atmel spokesman did not comment on whether the company had contacted potential buyers and whether it considered an external sale. A spokesman for Freescale did not receive an interview.


European goal


Samsung Electronics may consider other acquisitions, including the 1.9 billion dollar market value of Norwegian browser developer Opera, and smart home technology company AlertMe. In addition, sensor manufacturers may also become the acquisition of Samsung Electronics target.

Avi Greengart,
market research analyst Aivige Lingart, argues that it is difficult to select the right target for businesses that want to generate revenue through the internet of things, because the concept of Internet of things is still in its infancy. "It is still difficult to tell which technical level will provide maximum value and control," Lingart said. Any investment, whether it is self-developed or through acquisitions, may end in nowhere. ”


Samsung Electronics is willing to make acquisitions. The company said this month that it would invest more than 100 million dollars in smart home and device developers. Samsung, a VC of Samsung Electronics, took the lead on January 20 to invest 20 million dollars in EarlySense, an Israeli innovation firm.


for Samsung Electronics, the acquisition could be the fastest way for the company to prepare for a thriving internet of things. In terms of software business, "Samsung Electronics looks far behind rivals," said analyst Mevavalla. ”