Samsung may palm-off Liquavista to Amazon
Northern, WI 03/25/2013 (gdpinsider) – The world’s largest flat-panel maker, Samsung Electronics Co., Ltd (KRX:005930) (Current: 1,455,000.00 KRW, Down by 0.14%), is trying to sell Liquavista its Dutch subsidiary to Amazon.com, Inc (NASDAQ:AMZN) ( Current: $257.75, Up by 1.72%) and the price that they hope to get is under $100 million. The discussions are still private and the person who provided the news does not wish to be identified. Liquavista the Eindhoven, Netherlands-based company specializes in electrowetting which is a kind of display technology and is used mostly in electronic readers. Samsung acquired this company in 2011.
The market for electronic readers is gradually shrinking as a larger number of people switch to smartphones and tablets that have applications which provide similar functionality. Samsung Electronics Co., Ltd (KRX:005930) is also moving its focus to these devices which largely use liquid crystal technology or LCD’s. the Liquavista acquisition has not met Samsung’s expectation and the company is contemplating plans apart from a sale as well.
There will be a decline of 27 percent in e-book readers in 2013 and sales of this product will be in the range of 10.9 million units. IHS Inc (NYSE:HIS) ( Current: $103.69, Down by 1.95%) expects to ship around 7.1 million e-readers. This number is less than one third of the peak volume that was reached in 2011. The highly shrinking e-reader market is dominated by the Kindle devices from Amazon.com, Inc (NASDAQ:AMZN)