LG Electronics may be considering some major changes to its TV business as competition in the global television market continues to intensify. A new report out of South Korea claims the company recently held discussions with Hisense about possible restructuring plans, including the potential sale of LG’s TV division.
The report comes from Korean outlet EBN, which says executives from LG and Hisense met during a recent visit to Beijing. While no deal has been confirmed, and LG reportedly denied that active sale negotiations are taking place, the report has still sparked a lot of discussion around the future of LG’s television business.
The timing is not entirely surprising. LG remains one of the most recognizable TV brands globally, especially in the premium OLED segment, but the broader TV market has become increasingly difficult over the past few years. Chinese brands like Hisense and TCL have been growing aggressively, often competing with lower pricing while steadily improving panel quality and features.
According to market research data from Omdia, LG’s global TV market share has stayed around the 10-11% range recently, while Chinese brands have continued gaining ground. At the same time, profit margins in the TV business have reportedly remained fairly thin.
Another issue is LG Display’s gradual exit from large LCD panel production. That move reduced some of the vertical integration advantages LG Electronics previously had, especially when it comes to panel sourcing and manufacturing costs.
Despite still leading in OLED TVs, maintaining profitability across the wider TV lineup has apparently become more difficult. LG’s Media and Entertainment Solutions division, which includes the television business, reportedly posted weak profitability last year with operating margins sitting around just 1-2%.
For Hisense, a deal like this would obviously be significant. The company has expanded rapidly in recent years and has become much more visible globally, not only in budget TVs but also in larger Mini LED and premium categories.
At this stage, though, it is important to note that everything remains speculative. There is no confirmation that LG actually plans to sell the business, and companies often hold exploratory discussions without any final agreement being reached.
Still, the report does highlight how dramatically the TV industry has changed. Even established brands with strong reputations are facing increasing pressure as pricing competition becomes tougher and consumer demand shifts more toward value-focused products.
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