LG Electronics is reportedly reviewing the future of its TV business, with a new report from South Korean news outlet EBN alleging that the company recently held discussions with Chinese electronics giant Hisense regarding a possible sale or restructuring of the division. Citing industry and internal sources, it is claimed that xecutives recently travelled to Beijing and met senior officials from Hisense to coordinate restructuring plans involving its TV operations.
LG itself pretty much avoided providing an actual response regarding the matter when reached out by the publication. In a statement quoted by EBN, the company reportedly said that “it is difficult to establish the claim that discussions regarding the sale of the business unit proceeded without any official announcement or review at the company level.”
Weakening Profits And Strong Competition
According to EBN, the alleged review is being driven largely by weakening profitability and increasingly intense competition in the global TV market. The report claims LG’s TV business has struggled with low operating margins for years, while Chinese brands continue to expand aggressively through lower pricing strategies.
Market research firm Omdia reportedly estimates that LG Electronics’ global TV shipment share has remained in the low-to-mid 10% range in recent years. Meanwhile, TCL and Hisense are said to have recorded market shares of 14% and 12.5% respectively last year. EBN also notes that the combined market share of TCL, Hisense, and Xiaomi has allegedly surpassed Samsung and LG since 2024.
The report further claims that LG’s TV division has been facing structural cost pressures tied to OLED panel investments, production line maintenance, and global logistics operations. EBN says analysts believe these costs are increasingly outweighing the business’s contribution to the company’s overall profitability.
LG May Shift Towards Software Instead
EBN’s report also suggests that LG may be preparing for a transition away from hardware-focused operations and towards software and services businesses centred around its webOS platform. The publication claims that if the TV business is eventually spun off or sold, LG may accelerate efforts to expand webOS into areas such as monitors, signage displays, and automotive infotainment systems. It is believed that the company has already been restructuring internally in recent years, including reorganising its former Home Entertainment division into the newer Media & Entertainment division.
EBN also cited an industry insider who is claiming that any potential sale would likely require the company to first separate the TV business into its own standalone entity before reassessing its valuation. The same source allegedly described the move as different from past LG spin-offs involving growth businesses, arguing instead that this would represent a streamlining exercise focused on shedding lower-profit operations amid intensifying competition from Chinese manufacturers.
Another Major Exit, If True
The company’s TV operations trace their roots back to 1966, when the company’s predecessor GoldStar launched Korea’s first black-and-white television set, the VD-191. The report notes that the industry generally considers that launch as the official beginning of LG’s TV business. A sale or exit would therefore reportedly represent LG Electronics stepping away from TV manufacturing for the first time in nearly six decades.
If this ends up being the case, this would mark yet another significant exit for LG. As you may recall, the company had withdrawn from the smartphone market in 2021, shutting down its Mobile Communications division entirely.
LGstill maintains presence across several consumer and enterprise technology segments beyond televisions. Besides monitors and commercial signage products, the company remains heavily involved in home appliances, laptops, automotive components, HVAC systems, and smart home platforms.
(Source: EBN)
