Las Vegas, NV—In December, the board of directors of Samsung Electronics America Inc. (SEA) announced a merger with Samsung Telecommunications America LLC (STA). SEA and STA are major consolidated subsidiaries of Samsung Electronics Co.
According to Samsung Electronics Co., the objective of the merger of its two sales subsidiaries in the U.S. into a single entity is to increase efficiency and synergy. Though details weren’t announced, l ogistically, the merger will be accomplished by the absorption of STA by SEA as the surviving entity. The combined organization will be headquartered in Ridgefield Park, New Jersey, the current location of SEA.
SEA is comprised of Samsung’s Consumer Business division and the Enterprise Business division, and it oversees the distribution of consumer electronics products in the U.S., including digital cameras. It shares a location with its parent company’s North American headquarters. STA, headquartered in Dallas, Texas, was founded by Samsung Electronics in 1996 to research, develop and market personal and business communications products throughout North America, including mobile phones, wireless communications infrastructure systems, fiber optics and enterprise communication systems.
Similar functions within both organizations will merge, while resources will be reallocated to strengthen business competitiveness in the U.S., according to a statement released by South Korea-based Samsung Electronics Co.
The statement also noted that Samsung’s Media Solution Center, which makes apps and software running on Galaxy smartphones, will be integrated into other parts of the company, including the mobile unit, for faster decision making.
As part of a turnaround effort, in December, the Media Solution Center lost almost 50% of its 15 executives in an annual reshuffle of senior management, with President Hong Won-pyo reassigned to lead the global marketing-strategy office, according to the Wall Street Journal. The Journal stated that Samsung named Kim Seok-pil, the previous head of the global marketing-strategy office, as head of strategic marketing for the mobile business.
The Journal also reported that Samsung has begun consolidating U.S. operations by combining its mobile and consumer-electronics subsidiaries and cutting redundant positions. samsung.com
