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Message: EDIG strategy

Re: Samsung/ My $0.02...

posted on Sep 16, 2009 12:13PM

As many here know, my Division's parent company is Korean based. The parent company has a relationship with Samsung. Samsung is a very unique company in terms of structure. To over simplify, they (and our company) do not use Western styled top down senergy as they want every portion of the business to be it's own profit center. From the different factory departments to each model of every brand, each must make a profit or go away. Samsung is made up of a lot of different divisions and factories and management. They did not overtake Sony to become the market leader in CE products by being stupid.

With the above noted, the proposition that Samsung will buy EDIG would be based solely on the question of profit going forward. In general, Korean management absolutly hates our legal system and the "sue happy" mentality. This I know very well. They will not like the idea of a company that exists just to sue somebody -- many of the somebodies will be current Samsung customers as well.

If Samsung believes they can turn their legal lemons into lemonade and make a nickel or so, they might have interest. However, if they see only the past and do not "know" they can bring in a pile-o-cash by buying EDIG, they would do as LL suggests and just license the tech they might want.

Bottom line: My WAG is Samsung would have little interest in buying EDIG as they will hate us after paying for their own sins. I beleive we will cash the big check and move on and that's OK by me.

All just my $0.02 and worth the price you paid for it.

John

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