back to article Samsung flings $8bn at buyout of connected car biz Harman

Samsung is splashing out $8bn on buying US connected car tech firm Harman Industries, it announced this morning. The deal is for $112 in cash per share, a premium of just over a quarter on Harman’s closing share price at the end of last week. In its first quarter of fiscal year 2017 Harman sold $1.8bn worth of its “connected …

  1. KjetilS

    Harman does A LOT more than "headrest screens". I did a quick Google search, and they own JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity and Revel, and deliver products ranging from professional audio production to cinemas, high end hi-fi and car stereos.

    1. John Brown (no body) Silver badge

      It's just El Reg style. Ebay, the tat bazaar. Apple, the Foxconn re-badger. Faceboot, the content free ad site etc etc etc.

      "Biting the hand that feeds IT"

      Damn newbie kids with no sense of history. Git orf ma laaaaawn!

    2. joed

      Still, $8bn is quite a bit for ..file conglomerate. It'd be more prudent for Samsung to set aside that for Note 7 related losses. There's only so much creditors are willing to cover before sending repo man.

  2. Detective Emil

    Hmm. Wonder where this leaves the in-car entertainment line that supports Apple's CarPlay.

    1. Calleb III

      Why would anything happen to it? Samsung is happy to manufacture large portion (in some cases the majority) of the microchips going into every Apple product.

      1. Anonymous Coward
        Anonymous Coward

        Apple has done a pretty good job of excising about all Samsung manufactured content from the iPhone. The only thing in the iPhone 7 from Samsung is the LPDDR4. Obviously that's something they could get elsewhere if they really wanted, but maybe they feel it is in their interest to always buy one thing from them just to keep the lines of communication open so they have more options in the future.

  3. Dave 126 Silver badge

    Re connected cars, Autonmous / Assisted Driving:

    https://www.mentor.com/products/electrical-design-software/blog/post/5-automotive-megatrends-5cf1dcc3-14a2-4d0d-b8af-da46e42f486c

    I came across these when looking into Mentor Graphics (mentioned in another Reg article today). Since a part of there business is in designing wiring looms for vehicles, they are obviously interested in the future of vehicles, noting that every major car manufacturer and technology giant is investing time and money in this sector.

  4. Your alien overlord - fear me

    $8 billion for a company that has annual revenue of $7 billion. Deal of the decade or what?

    1. Anonymous Coward
      Anonymous Coward

      Not really, if they are losing (not saying they are) $2billion a year with little growth for instance. BHS was sold for £1 despite revenues approaching £1billion.

      Depends what their EBITDA, their assets, liabilities and their projections are to see whether this is a good deal or not.

      "Revenue is Vanity, Profit is Sanity, Cash is Reality" as someone has said at sometime.

      1. Calleb III

        According to Wikipedia (not the best of sources for this) They are making 0.7bn profit on the 7bn turnover which is a healthy 10%

    2. John Brown (no body) Silver badge

      "$8 billion for a company that has annual revenue of $7 billion. Deal of the decade or what?"

      That depends on if they out-bid HP :-)

  5. Anonymous Coward
    Anonymous Coward

    next "best" thing

    safe bet is, the cars will be self-driving within the next decade or so, what do you invest in to be ahead in the next race? Self-driving technology? Bzzz, already taken!

    So what else will those miserable humans, including ex-drviers be doing in a self-driving, electric, thus quiet vehicle... Well, apart from shielding their eyes from window ads popping at them left right and centre (click here to pay for the ad-free window upgrade, exclusive, 12-months licence which will also give you a 12 minute bonus uncluttered view through the window).

  6. M7S
    Flame

    If I had a car with Samsung kit

    would there be a "Note" in the driver's manual that taking it for a spin (ahem) might be hazardous?

  7. PNGuinn
    Flame

    Appropriate picture

    +1 for the picture.

    I gather glass fibre burns quite well in a fire ....

  8. Anonymous South African Coward Bronze badge

    Too early to sing "crash and burn, baby"?

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like