Samsung CEO Hints at Plans for ‘Megadeals’ at CES 2024
LAS VEGAS – Samsung Electronics Vice Chairman and co-CEO Han Jong-hee announced at a press conference during CES 2024 that the South Korean tech giant is considering megasized mergers and acquisitions this year in a bid to solidify its leadership in the global market.
We’ve been steadily pursuing M&A deals to strengthen our existing businesses and discover future growth engines. We are hopeful that a new (M&A) plan will come up within this year, Han revealed.
Samsung has been actively investing in venture firms over the past three years, with a focus on sectors like artificial intelligence, digital health, fintech, robots, and electronics. Additionally, the company has signed small and medium-sized M&A deals and made strategic investments in venture companies to uncover new growth opportunities.
Despite facing unfavorable deal-making conditions due to the COVID-19 pandemic, geopolitical tensions, and a global economic downturn, Samsung has continuously collected and reviewed potential target companies. Han emphasized the company’s persistent effort in this regard.
This is not the first time Samsung CEO Han Jong-hee has hinted at potential megadeals. Last year, during a product launch event in Seoul, Han mentioned the company’s interest in acquiring Rainbow Robotics, a local humanoid robotics company, although no updates have been provided on this deal to date. Samsung currently holds a 14.83 percent stake in Rainbow Robotics, making it the second-largest shareholder.
While Samsung has been pursuing large-scale acquisitions for years, its megasized corporate acquisitions effectively halted after their 2017 acquisition of Harman, a US automotive electronics manufacturer, for 9 trillion won ($6.88 billion).
The announcement came on the heels of Samsung’s warning of worse-than-expected earnings in the fourth quarter of 2023, with estimated operating profits plummeting by 85 percent to 6.54 trillion won. If confirmed, this would mark the first time Samsung’s operating profits have dipped below 10 trillion won since 2008.
Despite the challenging market sentiment, Han expressed cautious optimism for the future, stating, There is no guarantee whether the market sentiment gets better or not this year. We will take a step-by-step approach to have better performance this year than last year.
At CES 2024, Samsung unveiled its vision for AI leadership, pledging to make this burgeoning technology easily and safely accessible in everyday life. The company introduced Ballie, an AI companion robot, at the event, showcasing their confidence in delivering a new on-device experience to users through hyperconnectivity among devices.
Furthermore, Samsung is set to unveil its flagship smartphone, the Galaxy S24, next week in San Jose, California. The device will be the company’s first product to feature generative AI functions, including real-time translation in phone calls.
By embracing investment strategies, exploring emerging technologies, and prioritizing AI integration, Samsung aims to secure its position as a global market leader. The company remains committed to innovation and growth, despite the challenges posed by the current business landscape.
With its continuous pursuit of megadeals, Samsung seeks to forge a path towards further expansion and market dominance in the tech industry by leveraging strategic acquisitions and investments.
Overall, Samsung’s ambitious plans are aimed at not only fortifying its existing businesses but also identifying and capitalizing on future growth prospects, ensuring its continued success in an ever-evolving global market.
