The effect of the exploding Samsung Galaxy Note 7 is no longer funny. There has been a 30% reduction in Samsung’s stock value and consequently the shareholders have approved the sale of Samsung’s $1 billion printing business to HP. Samsung announced its Q3 results for 2016 and this drastic drop was expected due to the recalling of the Samsung Galaxy Note 7 smartphones from all over the world, and various other reasons. The idea of manufacturing this line of smartphones have been completely dropped out.
Following the Q3 earnings announcement Samsung held an “extraordinary general meeting” of shareholders and in the meeting it was decided that Samsung is to sell its printing business to HP – the shareholders have given their approval. The sale was anyway planned for November, it has just been expedited. The news of HP buying Samsung’s printing business started surfacing somewhere in the beginning of September 2016. HP will also get Samsung’s 6000 employees that work in its printing division. Among these, 2000 research and development engineers and 1000 are sales and support professionals. The rest are in service and manufacturing unit.
HP we will also get Samsung’s laser printing technology and around 6500 printing technology patents.