Samsung to invest in new higher growth areas

NEW YORK: Samsung Electronics Co may be looking to sell its hard-disk-drive business for $1.5 billion, the Wall Street Journal reported on Sunday.

The newspaper, citing a person familiar with the situation, reported that Samsung would use proceeds from the sale to invest in new, higher growth areas. While it would likely seek $1.5 billion, it might consider selling the money-losing division for $1 billion, according to the report.

One potential buyer for the hard-disk-drive business would be Seagate Technology, the person familiar with the situation was cited as saying.

Seagate declined to comment on the report.

South Korea's Samsung is the world's top maker of memory chips and flat screens, but it has struggled in the hard-disk-drive business. The business is due to become even more competitive with Western Digital Corp's plan to buy Hitachi Ltd's hard-disk-drive unit for $4.3 billion, a deal that would create global leader with deep resources.

Samsung could not immediately be reached for comment.