Samsung announced its quarterly results today. Its Q2 2021 profit is the highest in three years as it registered a 20% increase in revenue and a whopping 54% surge in operating profit. The surge was largely driven by the semiconductor division.
The company has been investing heavily in improving its core competencies to sustain its growth momentum for the future. With over $114 billion in cash reserves, Samsung is now open to major mergers and acquisitions.
Money is no object for Samsung
The company had previously said in January this year that it’s actively pursuing mergers and acquisitions. While it hadn’t named the targets, market analysts felt that Samsung might acquire an automotive semiconductor company. NXP, Texas Instruments and Microchip Technologies were believed to be among the targets.
Samsung has said once again that it’s going to push forward with large-scale acquisitions in the coming years to increase competitiveness in the post-COVID world. Samsung Electronics Executive Vice President Ben Suh confirmed to investors during a conference call today that “we are positive about pushing forward with significant-scale M&A within the next three years.”
Suh pointed out that the company has been extensively preparing for this and that it hasn’t limited its target companies. Market analysts feel that Samsung will aim for companies that can add to its core strengths in the semiconductor and mobile industry.
Samsung hasn’t made a major acquisition since it bought Harman in 2016 for $8 billion. There are many prospective targets in both industries that Samsung can potentially buy. With a substantial cash balance of over $114 billion in the bank, money isn’t going to be an object for Samsung when it goes company shopping.
The post Samsung wants to go shopping for new companies with its $114B cash appeared first on SamMobile.
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