Samsung Just Dropped $8B to Take You for a Drive

[Business ★★★]

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(P1) Samsung is making an unlikely and uncharacteristic acquisition, and apparently it figured it had better go big or go home: The South Korean electronics giant on Monday dropped $8 billion on Harman International, a Connecticut-based audio pioneer known for car stereos that have, as the Wall Street Journal reports, sunk its teeth deeply into the automotive industry as our cars have grown ever smarter. It’s a bold move for Samsung and signals that the electronics giant is betting heavily on providing the “smart” in “smart cars;” the AP notes that the acquisition “will instantly transform (Samsung) into a major player for auto infotainment, software, and connected car technology.”

(P2) “The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade,” a Samsung exec said in a release, per the New York Times. The deal also sets Samsung up to go head-to-head with a couple of familiar rivals,namely Apple and Google, both of which have been working on self-driving cars. Not that you’ll likely catch Samsung making actual cars, sources tell the Journal, but executives see a huge market emerging for products they already manufacture, ranging from semiconductors and display screens to mobile services.

WORDS: 211

SOURCE: http://www.newser.com/story/234027/samsungs-biggest-deal-ever-is-all-about-cars.html

VOCABULARY: acquisition, pioneer, infotainment, sophisticated, head-to-head

DISCUSSION QUESTIONS:

If you found the passage difficult to read or had problems understanding specific words or idiomatic expressions, please discuss them with your tutor. The following discussion questions should be answered in your own words and with your own arguments.

  1. Briefly, summarize the content of the article in your own words.
  2. In your opinion, do you think this is a good move by Samsung to buy Harman?
  3. Would you like to work for Samsung? Why or why not?
  4. If you had a company, would you like to have Google and Apple as your competitors? Why or why not?

READING COMPREHENSION QUESTIONS:

  1. Which company is Samsung buying and where is the company’s headquarters?
  2. The move by Samsung is being described as _______.
  3. Microsoft wasn’t mentioned as a company Samsung will have to battle directly. (T or F)
  4. With this acquisition, Samsung will probably not actual build self-driving cars. (T or F)
  5. What products do the executives of Samsung see growing in strength?

EXPRESSIONS or PHRASES:

What do the following expressions or phrases mean?

  • just dropped $8B (title)
  • sunk its teeth deeply into the automotive industry (P1)
  • betting heavily (P1)
  • sets Samsung up (P2)
  • Not that you’ll likely catch Samsung making actual cars (P2)

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One thought on “Samsung Just Dropped $8B to Take You for a Drive

  1. Pingback: Week115 | Cambly's Curated Articles

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