Samsung is the largest smartphone manufacturer in the world at the moment, and one of the largest tech companies out there in general. This company had some issues with their Galaxy Note 7 handset this year, which managed to impact them financially, so it will be interesting to see what happens in the coming months, and what is the company planning when it comes to the Galaxy S8, a smartphone that many people are waiting to land. Now, as already mentioned, Samsung is a huge company, and a US hedge fund, Elliott Associates, actually suggested that the company should split into two a couple of months ago. Why is that? Well, according to them, the company is undervalued in its current form, undervalued by as much as 70% due to its corporate structure. So, why are we mentioning this again now? Well, it seems like it could actually happen in the near future, read on.
A proposal by Elliott Associates actually suggests that Samsung Electronics should split into a holding company (ownership purposes), and an operating company. In addition to that, Elliott Associates suggested that the company should consider paying a $27 billion dividend from its reserves, and since then, the company did not really offer their opinion on the matter, they've only said that they'll consider the proposal. Well, the company's board of directors is meeting tomorrow, and will offer a formal response to Elliott Associates' proposal after the meeting. That being said, a new report was published in Korea by Seoul Economic Daily earlier today, and according to that article, Samsung is actually considering splitting itself into two, which is interesting. Now, this would highly change things over at Samsung, and would require some serious planning on their part, but it could benefit them in the long run, and raise the company's value really fast actually.
In any case, Samsung is currently discussing what to do in this regard, but chances are they won't exactly do everything Elliott Associates suggests they should do, but splitting into two seems to be on the table. According to some analysts, the heir to the company, Jay Y. Lee, is quite interested in splitting Samsung into two, as it would give his family even more control over the company. In any case, stay tuned, we're closely monitoring the situation, and will report as soon as we get some more info.