Zamen | زامن
Samsung May Split Company in Two to Allay Investor Concerns
Samsung Electronics announced on Tuesday it is considering splitting itself into a holding company and an operating company in order to boost shareholder value, in what could be the biggest shake-up in the South Korean tech giant's history.
According to Reuters, the move is part of a bid to improve investor returns after Samsung came under pressure from shareholders to simplify its business structure. Critics argue that the current structure makes it difficult to value Samsung since its assets are spread across various sister companies and affiliates. Establishing a separate holding firm would bring these under one name, improve transparency, and make it easier to value Samsung Electronics' business.