Consumer electronics maker Samsung is considering selling its hard drive business division in order to invest money in new business lines, a report as revealed.
The company is hoping to get around $1.2 billion for its loss-making HDD unit but will be happy to sell it for under a billion, the Wall Street Journal reported. Samsung will use a significant chunk of the money it raises from the sale to invest in new revenue streams.
Samsung, which is the world’s largest maker of memory chips, is most likely to sell the hard drive division to storage technology maker Seagate.
The hard disk drive market has come under a lot of pressure from the rise of tablet computer devices like the iPad as they use flash memory components instead of magnetic disks found in laptops and desktops.
According to an article on Market Watch, Samsung has promised to invest around $20 billion in new businesses by 2020.
The company has posted a weak first quarter forecast due to falling earnings. Samsung had posted a record $4.6 billion second quarter operating profit last year but has been struggling ever since owing to weak consumer demand.