LG says it has no plans to sell TV business

Sony recently handed majority control of its Bravia TV business to Chinese manufacturer TCL. Now, if reports are to be believed, another major TV brand could be heading in a similar direction. Korean electronics giant LG may be preparing to restructure and possibly even sell its television business.

Update: LG confirmed to India Today Tech that it has no plans to sell its TV business calling ongoing reports incorrect and misleading.

According to a report by Korean outlet EBN, LG has discussed restructuring its TV division, including the possibility of a sale, with Chinese electronics company Hisense. If such a deal eventually materialises, it could mark LG’s exit from TV manufacturing after nearly six decades in the business.

The report claims that LG executives recently travelled to Beijing and met senior officials from Hisense to discuss options for restructuring the company’s TV business. Among the options reportedly discussed was a potential sale of the division. Neither company has officially confirmed the talks. Responding to the report, LG said it is “difficult to establish” claims regarding discussions over the sale of the business without any official review or announcement at the company level.

The development comes at a time when global TV makers are facing slowing demand, shrinking margins and increasing pressure from aggressive Chinese brands. Companies like TCL and Hisense have steadily gained market share over the past few years by offering large-screen televisions at lower prices, making it increasingly difficult for traditional premium brands to compete profitably.

According to data cited in the report from market research firm Omdia, TCL and Hisense accounted for around 14 per cent and 12.5 per cent of global TV shipments respectively last year. LG’s share, meanwhile, has remained in the low-to-mid 10 per cent range in recent years. The report also notes that the combined shipment share of TCL, Hisense and Xiaomi has already overtaken Samsung and LG since 2024.

LG’s television business dates back to August 1966, when its predecessor GoldStar launched Korea’s first black-and-white television set, the VD-191. A potential sale to Hinsense would therefore bring an end to almost 60 years of LG’s television manufacturing legacy.

But why would LG even consider selling its TV business?

Reports suggest the answer lies in profitability. Financially, LG’s Media and Entertainment division has been under pressure despite some recovery this year. The division posted sales of 5.16 trillion won and an operating profit of 371.8 billion won in the first quarter, according to the report. However, analysts reportedly believe long-term profitability remains difficult because TV margins remain structurally low, often hovering around 1 to 2 per cent.

Even LG’s premium OLED strategy has reportedly struggled to fully offset rising production and logistics costs. The company has already introduced cost-cutting measures in the TV segment, including workforce reductions and increased outsourcing of production.

Notably this is not the first time LG has decided to sell or spin off its business. The company earlier exited the smartphone market. In 2021, LG shut down its mobile division after years of losses, ending experimental product lines such as the LG Wing and V-series smartphones. At the time, the company said it wanted to focus on more profitable and future-oriented businesses such as EV components, robotics and smart home technologies. Industry observers now see the review of the TV business as part of the same long-term strategy.