To get rid of loss-making unit for $1.5bn
South Korea’s Samsung Electronics is weighing options to sell its loss-making hard-disc-drive business, according to a report.
The Wall Street Journal, citing a source familiar with the matter, reported that Samsung is considering the sale to raise cash for investment in new growth areas.
"Samsung is considering selling its HDD business as it is not strategic to succeed; [Samsung] is neither a follower or a leader in the business, and it’s making a loss," the source told the WSJ.
Samsung hopes to get rid of the loss-making unit and seems to be prepared for a cut in the selling price, said the report.
The person said, "$1.5 billion seems a reasonable price to sell but it could even be sold for under $1 billion as Samsung is trying to get rid of it."
US-based hard-disc maker Seagate Technology is a prospective buyer, according to the report.