Samsung, LG and LG Display are buying TV maker TV.com
The trio of Samsung, a leading player in the Chinese home entertainment market, LG Electronics and the TV..com group will be buying TV., a popular Chinese online TV service that also offers video, and its parent company LG Electronics , for $1.9 billion, the people said.
The transaction was first reported by The Wall St. Journal.
Samsung has invested heavily in TV.
The deal will bring together a group that has already made a splash: Samsung has been in the TV business for nearly two decades, building the world’s largest television production company and one of the world to offer high-definition content.
The combination is expected to make TV. a dominant force in China.
Samsung, which makes televisions in South Korea, plans to create a separate digital TV platform for North America and Europe that will compete directly with Netflix and other providers, the companies said.
LG Electronics, which manufactures TVs and software for TV, plans on expanding its TV business globally, including to other emerging markets.
The companies did not disclose the total value of the transaction.
In addition to Samsung, the transaction includes LG Display, a unit of the global smartphone maker that is known for its high-end televisions.
TV. is owned by the Korean conglomerate LG Electronics.
Samsung and LG Electronics have not said how much the deal is worth, though some analysts have said that it could be as much as $1 billion.
The companies will also buy TV.tv, a service that offers online TV programming and shows.
The sale is expected take up to four months.
“We have worked closely with LG Electronics on the deal and it is a great addition to the TV group,” said Mike Johnson, president of Samsung Media, which oversees TV.