LG Electronics invests 87 billion won in Alfonso
Securing additional power for SW following EV
Strengthening the TV business by combining digital transformation
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LG Electronics has acquired’Alphonso Inc.’, a TV advertisement and content data analysis startup based in Silicon Valley, USA. Recently, it has decided to establish a joint corporation in the electric vehicle powertrain field with’Magna International’, the world’s third largest auto parts maker, and plans to maximize synergy in the software field after reinforcing new growth engines in the hardware field.
On the 7th, LG Electronics announced that it has invested about 80 million dollars (about 87 billion won) in Alfonso and secured more than 50% of the stake. LG Electronics explained that this acquisition will expand the TV business into the service, content, and software sectors by combining digital transformation with existing flagship businesses.
Alfonso is a TV advertisement and content data analysis startup established in 2012. It has an independently developed artificial intelligence (AI) video analysis solution and secures TV viewing data of 15 million households in North America. LG Electronics expects to provide the best content from a customer’s perspective based on Alfonso’s data competitiveness.
LG Electronics’ acquisition of Alfonso also means enhancing its TV business portfolio while securing additional growth engines in a competitive environment where Chinese companies are leading the way through differentiated service and content competitiveness. As of last year, the proportion of smart TVs among TVs shipped worldwide is over 83%, and the proportion of smart TVs among LG TVs is over 90%, so the proportion of enjoying various contents by connecting TV to the Internet is increasing. In this environment, if LG Electronics utilizes Alfonso’s advertising and content analysis capabilities, it can provide customers with a variety of customized services and contents through LG Channel, a free broadcasting service. Hyung-se Park, head of the HE Business Division of LG Electronics, said, “We will continue to expand the service area based on customer value while upgrading our business structure based on digital transformation.”
/ Reporter Jeon Hee-yoon [email protected]
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