Secured more than 50% stake in 87 billion won
Speed of business diversification following a joint venture with Magna
Hardware-centric software synergy map expanded
viewer
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 reinforce new growth engines in the hardware field and maximize synergy in the software 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 to the service, content, and software sectors by combining digital transformation with the existing flagship business.
LG Electronics is investing in △ZKW △’LG Magna e-Powertrain Co. Ltd’ (tentative name) in new business areas, and in its main business areas, Luxoft ) And established a joint venture with the company, speeding up the diversification of business models to software, services and contents.
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━ “Optimal competency to provide content from the perspective of customers” |
Alfonso is a TV advertisement and content data analysis startup established in 2012. It has an independently developed artificial intelligence video analysis solution, and secures TV viewing data of 15 million households in North America.
In recognition of its high competitiveness, the company has been continuously collaborating with global leading TV manufacturers such as LG Electronics, Sharp, Toshiba, Hisense, and Skyworth, as well as a number of competitive TV solution technology companies. LG Electronics expects to provide the best content from a customer perspective with the acquisition of Alfonso.
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━ Securing additional growth engines focused on hardware |
Through this acquisition, LG Electronics plans to enhance its TV business portfolio, differentiate its service and content competitiveness, and secure additional growth engines in the increasingly competitive environment, led by Chinese companies.
LG Electronics’ annual TV shipments reached 30 million units last year, expanding its global market dominance. In such a business environment, if LG Electronics utilizes Alfonso’s advertising and content analysis capabilities, it can provide a variety of customized services and contents to customers who purchase and watch LG TV through the free broadcasting service LG Channel. In addition, LG Electronics said that it is possible to segment and analyze customer tastes, provide customized services, and generate synergy in all business areas beyond TV as well as simple content revenue generation.
Hyung-se Park, head of LG Electronics HE Business Division, 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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