Word is going around that we may see more consolidation in the PC market as Samsung Electronics is reportedly in talks to sell its PC unit to Lenovo. This would be the second major slimming down effort by Samsung Electronics in just a couple of months time, in September the South Korean company sold its printer and copier division to HP for $1.05 billion.
Lenovo is world's largest PC shipper while Samsung is a relatively tiny player. Two years ago the company already decided to exit the European laptop market due to profitability issues.
According to the unconfirmed rumors, the two companies have been negotiating for several months and the talks are described as though so there's a good chance they'll fall through. Samsung reportedly seeks a price in excess of $850 million.
International law firm Paul Hastings is believed to be representing Samsung while Lenovo is being represented by Freshfields Bruckhaus Deringer. Samsung rarely reveals the numbers that its PC business brings in so it’s hard to estimate what it will be worth. The report claims that if a deal is reached it may be valued at more than $850 million, however, it does add that talks have continued for months but little progress has been made so far.