In a surprising turn of events, Samsung Electronics is contemplating whether or not the company should split into different divisions. Such a division would serve an apparent purpose, as the founding family members would strengthen their position on the smartphone arm of Samsung. Moreover, the split could eventually boost shareholder value, although that is still a bit early to tell.

Splitting Samsung Electronics Into Different Entities

The split of the electronics giant into separate divisions

To be more precise, the split would see Samsung Electronics divide itself into a holding vehicle on the one hand, and an operating company on the other hand. The holding vehicle would serve ownership purposes of the Lee family, who created Samsung Electronics and still rule the company to this very day.

Additionally, the split would see

Restructuring plans are not uncommon in the business world, even though the change would bring a fair few changes to Samsung Electronics as we know it today. Then again, this restructuring has always been a part of the company plans, ever since Jay Y. Lee took over the reigns from his father not too long ago.

This news has nothing to do with the recent Samsung hardware failures, though. Incidents like those can always occur,  and are not unique to Samsung Electronics, either. Although the exploding batteries have hurt the company in the PR department, their quarterly results remain strong, and Samsung is still a top brand in the smartphone industry.

Investors and traders are keeping a close eye on these restructuring plans. Stocks of the electronic giant may respond inadvertently to this news, depending on what the outcome will be. Financial experts, however, predict an upward trend in value of Samsung shares, although one never knows how the market will respond.

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