Samsung Electronics has signed a deal to buy Harman International Industries for US $8 billion – said to be the largest ever acquisition by a South Korean company.
Reports suggest that Harman’s extensive interests in the audio industry are not the prime target of Samsung’s takeover. The South Korean giant is interested in moving into the automotive industry and it is Harman’s activities in that area that have attracted its attention as the Korean giant tries to recover from the chaos caused by its ‘exploding battery’ scandal following the launch of the Galaxy Note 7.
Harman has an established track record in the car business, supplying companies including BMW, Toyota and Volkswagen with a variety of products including, audio and entertainment products and wide range of safety and connectivity services.
Whether Samsung will have wish to develop Harman’s music industry brands (which include JBL, dbx, Lexicon, BSS, Crown, Soundcraft and Studer) or will sell-off some of the most cherished name in music technology remains to be seen.