Samsung is hoarding billions in cash to likely make a major acquisition

There are a lot of rumours on the internet right now about how Samsung will dispose of its cash reserves of over $60 billion. The general consensus is that the company will become active in mergers and acquisitions to buy some big company. However, Samsung has yet to make any major acquisitions since it bought Harman for $8 billion in 2017.

Here's What We Know

According to Korean media reports, Samsung Electronics is raising billions of dollars from subsidiaries around the world to its headquarters in Korea as the tech giant prepares for a large-scale acquisition. Back in 2021, Samsung Electronics' then CFO Choi Yoon-ho said that a deal of "significant" size would be struck in the next three years and the initiative was backed by vice chairman Han Jong-hee during this year's CES.

It is not yet clear which companies Samsung may be interested in acquiring. Analysts believe that Samsung may be eyeing artificial intelligence companies as it would be a large growing business. Semiconductor companies such as NXP have long been rumoured to be on Samsung's radar, but with the increased risks associated with large deals in the semiconductor industry, it is possible that Samsung may not be at risk of a deal being derailed due to regulatory restrictions.

Source: KoreaJoongAngDaily