LG Electronics has denied claims that it is exiting the TV business and selling it to Hisense. In an official statement issued late yesterday, LG said “LG Electronics would like to state that news regarding the potential sale of its TV business is completely baseless and therefore speculative and misleading”. The original report from EBN yesterday has since been deleted.
LG is allegedly in talks to sell its entire TV business to Hisense with a meeting between representatives of the two companies currently taking place in Beijing. The main reason for the sale of LG’s nearly 60-year-old TV business is due to declining profits driven by competitive pressure from Chinese TV brands such as TCL and Hisense.
If the original report is accurate, it would not be surprising as Sony itself sold its TV business to TCL this year with the formation of a new subsidiary, Bravia Inc. Samsung has recently pulled out of the Chinese TV market due to fierce price competition.
