This is a translation of a foreign article, so there may be translation errors.
https://www.avcesar.com/marche-tv-lg-pourrait-il-vraiment-revendre-sa-division-televiseurs-a-hisense-47687
According to a Korean media outlet, LG, a global conglomerate, is reportedly in negotiations with Hisense, a Chinese manufacturer, regarding the acquisition of its TV division. Given how surprisingly unbelievable this news is, it is a rumor that should be approached very cautiously.
Will the global television market truly face one of the biggest upheavals in history? LG, which has been active in this field for almost 60 years, appears to be considering selling its TV division, albeit under extremely strict conditions. According to Korean media EBN, representatives of this Seoul-based company recently visited Beijing to meet with executives of Hisense, a Chinese conglomerate, to discuss the future of this division. Editor's Note: The original article published early that day has since been deleted.
Withdrawal from OLED TV Market Following the Previous Smartphone Case?
If such radical restructuring were to become reality, it could be explained by declining profitability and mounting competitive pressures that have become difficult to handle. Editor's Note: We have frequently mentioned the difficulties of LG Display subsidiary through our columns, see our news on LG Display finally achieving 2025 profitability thanks to OLED. To support this hypothesis, some experts are reminding us that LG closed its smartphone division in 2021. Nevertheless, such a withdrawal would leave an enormous gap that is almost impossible to imagine in the premium TV sector, particularly in the large-screen and OLED markets. This is because OLED is a technology in which this brand still maintains overwhelming market share.
Traditional TV Powerhouses Shaken by Chinese Manufacturers' Offensive
The landscape of the television industry has changed dramatically in just a few years. Chinese brands such as TCL and Hisense have achieved explosive growth worldwide and now hold approximately 14% and 15% market share respectively in the global market. This remarkable upward trend is the result of a combination of very aggressive pricing policies along with products that can undoubtedly be considered impressive in terms of performance.
This new economic situation is forcing traditional manufacturers to comprehensively re-examine their long-term strategies. In fact, this situation recalls another major restructuring in the industry—something that would have been unimaginable before Sony's official announcement. Sony, a Japanese conglomerate, has also recently transferred over half of its TV division stake to TCL, another major Chinese player.
Firm Denial and Industrial Reality Questioning the Veracity of This Rumor
Facing the seismic repercussions triggered by this announcement just hours earlier, skeptical reactions immediately followed, with the parties involved coming forward first. An LG spokesperson immediately refuted these reports, stating they were completely baseless, speculative, and misleading.
Beyond the official denial, many industry observers share this skepticism. It is difficult to imagine LG separating its TV division, which serves as a global technology showroom for LG Display, its subsidiary and the sole producer of large-scale WOLED panels.
Moreover, as the foundation of a national alliance to counter Chinese manufacturers, even the OLED TV market cooperation between Samsung and LG Display, where the first company supplies millions of panels to the second—OLED LCD TV Samsung and LG Display Agreement 5-year contract signed! See news—would be shaken.
Furthermore, abandoning the television market would block the most important sales channel for its own display factory, which is fundamentally different from the smartphone case where this brand never had the advantage of vertically integrated production.
▶ Source: https://www.avcesar.com/marche-tv-lg-pourrait-il-vraiment-revendre-sa-division-televiseurs-a-hisense-47687
