[libranof1987]

In a rather surprising move, especially considering the diverse set of industry segments both come from, Samsung is to buy Harman.

This could be Samsung's entry ticket to the automobile segment, where more and more technology companies such as Microsoft, Google and Apple have already made value offerings.

Source & Full Article

Samsung Electronics Co. is spending $8 billion to buy its way into a burgeoning market for automotive technology alongside Apple Inc. and Google as the smartphone business wanes.

The South Korean company is making its largest-ever overseas acquisition with an offer for Harman International Industries Inc., angling to become the go-to supplier of everything from in-car entertainment to connected-auto services. It comes days after Samsung Group heir-apparent Jay Y. Lee formally ascended to the board of the electronics firm, a move that may shore up his influence over the family-run conglomerate’s prized asset.

Adding U.S.-based Harman will lift Samsung into the top ranks of auto technology suppliers and give it existing relationships with BMW AG, Volkswagen AG and General Motors Co. While Harman became a legendary name in high-end audio equipment, it’s pushed deeper into automotive supplies and now gets 65 percent of sales from the sector. Samsung’s $112-a-share offer was 28 percent above Harman’s closing price of $87.65 in New York on Friday. Harman surged 26 percent to $110 at 11:37 a.m. Monday.

With the deal, Samsung hope to marry its fast microprocessor and software technology with Harman’s
infotainment and vehicle systems to offer carmakers more advanced connectivity, said Young Sohn, Samsung’s president and chief strategy officer, in a phone interview.

[paragsachania]

News poured in this morning when my better half said she will now be a Samsung employee and few weeks before we were wondering what's the next Harman product we should buy through employee purchase.

With this, the choices will expand to TVs, refrigerators and more. I will look at it that way, obviously .

For the rest of the world, Connected Car Market - This is where Samsung Will now gain immensely, all due to the presence of Harman before.

[Zappo]

Samsung is suddenly in an overdrive to get into the automotive business. With the kind of cash pile they have this could mean some serious intent. Today's all cash deal on Harman International is the second one in close succession to their earlier intent on buying out Magnetti Marelli.

Is there some connection between these deals? Here are some interesting points to consider,

- Samsung competes tooth and nail with Apple in the cellphones market
- Apple is now angling to get into the automotive space through ICE as well as through autonomous, self-driving cars technology
- Samsung had at one point tried to get into the car market but had to withdraw, so a latent desire to be in this market has been in place
- Samsung as a brand has a huge presence in India
- India is now acknowledged as one of the fastest growing car markets in the world
- Harman has started establishing itself as an OEM in the car ICE space in India; after Tata Motors they are now known to be in discussion with VW and Fiat
- Magnetti Marelli had the AMT technology with it for a long while, just as a few others in the world, but it never caught on. That was till India happened. Now two of the biggest AMT proponents in India, Tata and Maruti use their AMT systems and the market is growing by leaps and bounds.

Are these seemingly disparate points having some connections? Your guess is as good as mine!

[srishiva]

With lots of innovations in connected car systems, they could have some synergy in the communication systems involved. Also, in the user interface/OS levels.

But, is there anything else to be seen in the integration of mobiles with car systems beyond Apple Car Play and Android Auto independently?

I am thinking the brand names will remain the same.

[libranof1987]

Originally Posted by Zappo

Is there some connection between these deals?

+ 1

The auto segment seems to be the next frontier for the technology companies given the amount of applications possible.

The cars are getting more ''smart'' and the biggest enabler of that, is AI.

Originally Posted by srishiva

But, is there anything else to be seen in the integration of mobiles with car systems beyond Apple Car Play and Android Auto independently?

I'd imagine there's quite some ways this can be achieved.

Let's take the example of the Nissan Smartcar system: it allows you to remotely start the car and switch on the air-conditioning among several other things.

http://www.nissan-smartcar.com/site/en/faq.php

I remember the advertisement for this: this man just gets out of the plane on a freezing winter day and while he's waiting at the baggage carousel, he goes to the app and turns on the engine, and switches on the air-conditioner. By the time he's at the car, all the ice from the windshields has melted and the cabin is cozy at room temp.

[cooldude1988765]

Originally Posted by libranof1987

This could be Samsung's entry ticket to the automobile segment, where more and more technology companies such as Microsoft, Google and Apple have already made value offerings.

Doesn't harman also own JBL, Infinity, Harman Kardon etc both in the home and car audio segments.

Will Samsung also take over these subsidiaries (if the deal does go through) or is it only the Harman car entertainment division ?

List of subsidiaries owned by Harman International

AKG Acoustics - microphone/headphones
AMX - video switching and control devices
Bang & Olufsen Automotive
Becker - car infotainment
BSS Audio - signal processing
Crown International - pro amplifiers
dbx Professional Products - signal processors
DigiTech - guitar products
HardWire - guitar pedals
HiQnet - audio digital network, based on Ethernet
harman/kardon - home/car audio
Infinity - home/car speakers
JBL - home/car speakers & amplifiers, professional speakers
Lexicon - digital processing
Mark Levinson Audio Systems - home/car audio
Martin Professional - stage and architectural lighting and effects fixtures
Revel - home speakers
Selenium - home, car and professional speakers, amplifiers, sound tables/mixers
Soundcraft - mixing consoles
Studer - mixing consoles

Source: Wikipedia

[paragsachania]

Originally Posted by cooldude1988765

Will Samsung also take over these subsidiaries (if the deal does go through) or is it only the Harman car entertainment division ?

It will include Harman's subsidiaries as well:

---Automotive - Connected Car Technologies,
---Audio - JBL, HK, Infinity etc,
---Professional - B2B Platform to delivery AV solutions for Stadiums andConcert Halls,
---Connected Services - Tapping the IoT Market

[vinjosep]

Originally Posted by Zappo

Is there some connection between these deals? Here are some interesting points to consider,

- Apple is now angling to get into the automotive space .. as well as through autonomous, self-driving cars technology

Are these seemingly disparate points having some connections? Your guess is as good as mine!

I hope you did notice the news clippings below. Have been hearing about the same in the auto industry offline and so there seems to be some truth in it.

http://www.usatoday.com/story/tech/n...port/90151548/

http://www.nytimes.com/2016/09/10/te...cars.html?_r=0

Understandably, Samsung has made a positive move. I played right, they have the right cards.

[NPV]

Originally Posted by paragsachania

It will include Harman's subsidiaries as well:

What about the IT services companies Harman acquired not too long ago - Symphony, Teleca, Aditi Technologies, et all ? Are these also part of the deal ?

[paragsachania]

Originally Posted by NPV

What about the IT services companies Harman acquired not too long ago - Symphony, Teleca, Aditi Technologies, et all ? Are these also part of the deal ?

Yes. Includes all of them. My first response to this thread is due to this only .

Aditi was acquired by Symphony Teleca and then that was again acquired by Harman connected and now that will be part of Samsung.

Aditi and Symphony Teleca never co-existed as the former was completely acquired by Symphony Teleca.

[avisidhu]

Originally Posted by libranof1987

........
I remember the advertisement for this: this man just gets out of the plane on a freezing winter day and while he's waiting at the baggage carousel, he goes to the app and turns on the engine, and switches on the air-conditioner. By the time he's at the car, all the ice from the windshields has melted and the cabin is cozy at room temp.

Slightly OT, but I've always wondered that instead of the gazillion useless features, if a relatively lower segment car can come up with this feature so that your car is cooled during the scorching summers, people would actually line up to buy one!

[hemanth.anand]

Originally Posted by libranof1987

This could be Samsung's entry ticket to the automobile segment...

Samsung is not a totally new player in automotive market. They have their share in RSM (Renault Samsung Motors) with a manufacturing plant in Busan

They were also manufacturing earth moving equipment before Volvo took over that company called SHE (Samsung Heavy Equipment)

[JonSnow]

Note to mods: The team-bhp news article mentions the amount as 8 million instead of billion. Please correct it. Thanks.

[Thilak29]

For me, this means continued hangover of transition!
33 months and 4 names to place i work!
Aditi > Aditi Symphony Teleca > Harman > Samsung!

[hemanth.anand]

Originally Posted by Thilak29

For me, this means continued hangover of transition!
33 months and 4 names to place i work!
Aditi > Aditi Symphony Teleca > Harman > Samsung!

One of my friends also has similar list of companies in her Resume although she has not resigned even once!

Core objects > Symphony services > Symphony Teleca > Harman > Samsung!

The transition must be really tough I guess.