You read that correctly and no Alphonso is not a human, it is instead a TV data and measurement firm that LG has invested in. Announced today, LG has made a significant investment in Alphonso to bring together the two TV industry leaders’ technologies and innovations to the company’s smart TV lineup.
The investment, reported to be north of $80 million, will see LG becoming Alphonso’s largest investor with a controlling stake of more than 50 percent. The Korean tech giant has over the years made understanding customer tastes and consumer trends one of its highest priorities as part of its digital transformation strategy aimed at delivering better customized services.
In terms of strategy, and the thinking behind the investment, LG plans to utilize Alphonso software and services with its broad range of home entertainment products. Alphonso’s expertise also includes data analytics, media planning and activation, and Video AI capabilities all of which will be at LG’s disposal.
The statement released also mentions that this is Alphonso’s first investment round since its Series A financing of $5.6 million in 2017, led by Manifest Investment Partners. And despite this new investment, the company will continue to operate as an independent business under its current brand and leadership based in Silicon Valley.
“Our investment in Alphonso is a key component of our digital transformation strategy focusing on AI, big data and cloud to fundamentally change how consumers interact with their devices,” said Park Hyoung-sei, president of the LG Home Entertainment Company. “With Alphonso’s TV data analysis capabilities, LG will be able to better fulfill consumers’ needs by providing even more customized services and content to consumers. We are proud to welcome Alphonso to the LG family.”
“LG and Alphonso have a shared vision for advancing the smart TV ecosystem through innovative software and services oriented toward modern new consumer experiences on one end, and highly flexible, lucrative advertising, planning, and measurement offerings for brands, agencies, and broadcasters on the other,” said Ashish Chordia, founder and CEO of Alphonso. “Becoming part of LG Electronics gives Alphonso the backing of one of the world’s leaders in home entertainment products, with access to a massive global inventory of connected TV screens. We can now maximize our mutual impact on the TV marketplace as we bring our products together and deliver immense value for the ecosystem.”
