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  • 11.29.16

Samsung says it will consider splitting into two separate companies

The South Korean giant that makes everything from dishwashers to CPUs to smartphones told investors on Tuesday that it is considering splitting the company in two, reports Reuters. If the split goes through, one company would be a holding company, which would bring Samsung’s various affiliates and sister companies under one name, and the other an operating company. The move is being considered in order to boost shareholder value. Shareholders argue that Samsung’s current structure is too complex, which results in poor corporate governance and inefficient cash management and thus a stock price that is cheaper than it should be.MG