Even though Samsung’s electronic department steals the show, the number of companies that the Korean tech giant owns is endless. Ever since the company was founded in 1969, they have rapidly expanded into a slew of diverse business ventures. Unbeknownst to most of their clients, Samsung Group has a stake in everything from cars to museums. In January 2018, Samsung Group boasted an impressive market capitalization of $301 billion. With a shocking revenue of $174 billion in 2016 alone, it’s no surprise that Samsung keeps expanding.
While Samsung Group by itself is a force to be reckoned with, their business divisions make this ever-expanding empire possible. These key subsidiaries help Samsung remain a factor in electronics, refrigerators, appliances, information technology, mobile communications & medical devices. Every year, Samsung Group continues to acquire more companies in a surprising amount of markets. What makes Samsung’s investments even more novel is the fact that they are wildly successful. For example, their insurance company Samsung Life has holdings that are worth over 23 trillion won ($20.5 billion). This makes them the largest stakeholder in the world after the National Pension Service.
Samsung’s ability to branch out into successful business ventures makes them one of the most powerful corporations in the world. To truly understand how far this company has evolved, examining their biggest acquisitions is essential. For this reason, we compiled a list of the biggest company takeovers Samsung made in recent years. Even though the amount of money they invested in these subsidiary companies is staggering, it’s minute compared to their revenue. Enjoy an intimate glimpse at Samsung’s business ventures with this surprisingly affluent list of companies!
Examine Samsung’s Top Subsidiary Companies
Company #3: SmartThings – Even though this corporation was founded through tragedy, it turned into an extremely lucrative venture. In 2011, SmartThings co-founder & CEO Elex Hawkinson’s mountain house suffered $80,000 worth of damages when it got flooded. This loss inspired Hawkinson to create a way to digitally connect homeowners with their homes. Lacking funds, he started a Kickstarter campaign that raised $1.2 million dollars. The company later won the Spark of Genius startup competition at the Dublin Web Summit, which netted $3 million in seed funding.
Through a series of innovations, SmartThings became so successful that it caught the eye of Samsung. Intent on improving synced home centers, Samsung purchased SmartThings for $200 million in 2014. Today the company operates as an independent company within Samsung’s Open Innovation Center. This proved to be a wise investment, and Samsung quickly developed multiple kits to pair with the SmartThings Hub.
Company #2: LoopPay – This is another company that received robust venture capital financing & got bought out for a staggering price by Samsung. Founded in Massachusetts, this start-up invented a new way for shoppers to purchase in-store items through their phones. LoopPay connects clients & stores through an electronic payment receiving system. Incorporating this payment method was crucial to allow Samsung to compete with Apple Pay by Apple Inc. For this reason, Samsung purchased LoopPay for $250 million in 2015. Now that both tech giants have unique payment systems, the race is on to refine them.
Company #1: Novaled – Through a series of innovative inventions, this German company pioneered new displays. Ever since its founding, Novaled specialized in researching & developing organic light-emitting diode displays. Their creations were so unique that Samsung acquired Novaled for $347 million in 2013. These inventions were immediately implemented in Samsung’s television screens & mobile devices. Today the two companies continue to create groundbreaking electronics together.