Samsung Sells Printer Division As Stock Tanks Over Note 7 Debacle

Well, I have two pieces of news to report from the world of Samsung. The first is that they have announced that they are selling their printer division to HP:

The personal-computer maker has agreed to buy Samsung Electronics Co.’s printer business for $1.05 billion, betting that it can grab share and generate income, even in a shrinking global market.

The deal will add to earnings in the first full year, Palo Alto, California-based HP said in a statement Monday. As part of the agreement, Samsung has committed to buy $100 million to $300 million worth of HP shares on the open market after the acquisition closes, the companies said.

That sounds sort of interesting. And it’s kind of handy that this deal nets Samsung a billion dollars as they may need the cash at the moment seeing as their stock is tanking:

Shares of the world’s biggest smartphone maker plunged 7% Monday after the company told owners of its high-end Galaxy Note 7 phone to stop using the devices over concerns they can burst into flames while charging.

A share drop of 7% works out to roughly $25 billion dollars. That’s not a trivial amount of money and I am sure that there are people at Samsung HQ who are very unhappy about the effects of the ongoing Note 7 debacle where the phones catch fire. What doesn’t help this situation is that the company is telling consumers to stop using the phones immediately. Samsung’s going to have a lot of fun digging themselves out of this one.

 

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