Rumours are swirling that besieged manufacturer Samsung may be forced to split the company up in order to reassure investors after recent disasters with exploding phones and exploding washing machines.
Reports are doing the rounds that investors in the Samsung business are not happy bunnies and are looking for the business to reorganise itself in the wake of recent events. The remedies being sought are not exactly clear at this point but it does look as if the issue may be forced on Samsung.
More pressure has been added to these calls due to the domestic Korean political scandal that Samsung’s management has gotten itself embroiled in that has led to questions being raised over how the company is being run.
This leading to Korean prosecutors raiding Samsung’s offices and siezing documents to investigate claims that company president Park GeunHye has been misusing company pension funds. Of course this is denied but smoke, fire and a raid on one of the world’s largest businesses spells trouble and would suggest rather strongly that there is some evidence to support this notion.
Indications at this point would seem to suggest the the company will split though. Just how that will happen we don’t yet know.
We wouldn’t be surprised to see the appliance side hived off however and away from Samsung’s more core electronics business.
That in turn begs the question of whether or not that, as a standalone business, if Samsung appliances side of things could actually survive going forward.
