NEW YORK (TheStreet) -- Samsung (SSNLF) made its biggest acquisition thus far by agreeing to buy Harman International Industries (HAR) for $8 billion as a way to extend its arms into the connected car electronics space, the company announced earlier today. CNBC's Jon Fortt joined Monday morning's "Squawk Alley" to discuss the implications of the purchase.
"Given everything that Samsung has been through over the past couple of months," this acquisition is "particularly interesting," Fortt said. In October, Samsung had to stop production of its new Galaxy Note 7 smartphone after both its original and replacement version were known to catch fire or explode. In addition, Samsung had to recall 2.8 million washing machines because the tops could detach and injure a user.
Considering those setbacks, this acquisition is good since it comes as people are especially "excited" by the connected car space, Fortt said. But while it's smart to move into this field now, this wasn't the only way it could have done so.
"The question is do you get into [the connected car space] in a powerful way with a legacy purchase, which is what Harman is, as innovative as it is. Do you get it doing that or is it more of a software move where Samsung should have done something on its own?" Fortt asked.
Shares of Harman International Industries were surging by 25.43% to $109.94 in late morning trading on Monday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
TheStreet Ratings team rates Harman International as a Buy with a ratings score of B-. This is driven by a few notable strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: HAR