Samsung Buys 10% Stake In Pantech

Posted: May 22 2013, 7:50am CDT | by , in Technology News


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Samsung Buys 10% Stake in Pantech

The South Korean colossus, Samsung has bought a 10% stake in Pantech, a handset manufacturer. This buying of a chunk of Pantech could supplement Samsung’s pre-existing, pre-eminence among the world’s leading technological multinationals.

While Samsung happens to be a big player on the field, Pantech is not exactly a small-time fellow either. As the third largest handset maker on the South Korean scene, it wins kudos as a need-provider par excellence. That’s why when Samsung suddenly decided to acquire a 10% share in the company it was lauded as a step in the right direction. This is one partial acquisition that will have a salubrious effect on Samsung’s economic vital signs. Both companies will cooperate in the manufacture of much valued hardware.

According to The Next Web, the real deal was signed, sealed and hopefully it will deliver in the future. In order to maintain a solid relationship without any conflict of interests, Samsung has opted to be a passive onlooker rather than a meddlesome doer. This policy of no involvement is best for both sides. The two have previously collectively created semiconductors as well as display businesses. Pantech has already spent $211 million on the purchase of device components from Samsung. In the capacity of being the world’s most extensive smart phone producer, Samsung spent a little less than $48 million on the share transaction.

Pantech meanwhile may be quite famous in South Korea but it lacks exposure on a global level. Now that situation may change thanks in no small part to Samsung. This deal will make Samsung one of the big three stakeholders of Pantech. The other two besides Samsung in this trio are Qualcomm Incorporated and Korea Development Bank. The financial state of Pantech will improve and as for the investors they will be automatically attracted once growth and productivity hit the high water mark. Before this landmark decision, Pantech was a local hero of sorts. But now it will make it to the exclusive club of global giants within a few years. The two were in competition before as well. Now the bitterness has gone and along with it any feelings of ill will.

Samsung with its intensely creative motto of “everyone’s invited” has always kept its morale up there in the stratosphere with the likes of Apple and Google. Its sophisticated electronic goods and beautiful smart phones have wowed target audiences on a worldwide level. With this fractional acquisition it can bury the competitive past and get on with its usual business of technological innovation.

Image Credit: Getty Images

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
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