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LG Considering All Options including Sell-off

Write: 2021-01-21 15:24:23Update: 2021-01-21 18:39:50

Photo : YONHAP News

Anchor: Following LG Electronics' announcement on Wednesday that it is reviewing future plans for its unprofitable mobile business, including a disposal, attention is being drawn towards potential candidates for the takeover.
Park Jong-hong has the details.

Report: LG Electronics said it is leaving all possibilities open in dealing with its beleaguered mobile business unit, including a takeover. 

In an official statement on Wednesday, it also said it is closely reviewing its future business direction.

An LG official added that, at this juncture, options include downsizing the business, a sell-off and maintaining business operations.

LG's mobile business has been in the red since the second quarter of 2015, with its accumulated operating loss reaching around five trillion won as of last year.

According to industry sources on Thursday, some of the candidates being brought up for the takeover are Google, Facebook, Volkswagen and Vietnam's Vingroup Joint Stock Company.

While LG's over 30 years of experience in smartphones and technological capacity may be attractive to potential buyers, skeptics say the takeover itself may not be feasible considering the company's dismal one to two-percent global market share.

The price for the takeover would be another burden for potential buyers, considering it had a workforce of more than three-thousand and made four trillion won in sales last year.

Some observers say LG will, for now, focus on reducing the size of and reorganizing its mobile business unit, and prepare for a takeover in the mid- to long-term. Others forecast the company could seek a split sale of overseas assets and intellectual property rights.
Park Jong-hong, KBS World Radio News.

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