South Korea’s LG Electronics Inc. sold its TV set-top box unit to French media and entertainment company Technicolor SA for $50 million to formally fold the business.
Global set-top box shipment has been on a decline from the peak of 290 million units in 2015 as multi-media platforms require less presence of separate set-top box, according to market data provider IHS.
Its bigger rival Samsung Electronics Co. also attempted to sell off its set-top box unit to global private equity fund Carlyle Group in 2015 but failed in the end.
The sale would help the balance sheet of LG Electronics that has been losing money from smartphone.
Technicolor is France-based media and entertainment firm commanding the biggest share in set-top box after purchase of Cisco’s set-top box unit in 2015 at $600 million.
Shares of LG Electronics closed Thursday at 79,700 won ($69.91), up 400 won or 0.5 percent from the previous session.
By Han Woo-ram and Lee Dong-in
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