Samsung Electronics Acquires LG Display’s OLED TV

by Joy Festus
3mins read

Samsung Electronics is reportedly in talks to acquire LG Display’s OLED TV panel business. The multi-billion dollar deal will give Samsung a big boost in the OLED TV market.

The Truth about Samsung buying OLED from LG.

1. The deal is said to be worth $1.5 billion.

2. LG Display will supply Samsung with 2 million OLED panels by 2024 ,Three million in 2025 and 5 million in 2026.

3. These panels will be used in Samsung’s high-end OLED TVs.

4. The deal is a big win for LG Display, which is struggling to compete with Chinese rivals in the LCD panel market.

5. The deal is also a sign that Samsung has finally realized the superiority of OLED technology.

Read on

LG Display is the world’s leading manufacturer of his OLED panels used in high-end TVs and smartphones. Samsung is one of the world’s leading TV makers, but does not manufacture its own OLED panels. Buy them from LG Display instead. The deal will allow Samsung to produce its own OLED panels, giving it more control over its supply chain and pricing. This will also allow Samsung to differentiate its TVs from those of its competitors, as OLED TVs are widely considered to be superior to LED TVs. The deal is still in the early stages of negotiations, and it is unclear if the deal will go through.

Benefits of Samsung’s Deal.

There are many benefits that Samsung can gain from acquiring LG Display’s OLED TV panel business.

First, it would give Samsung more control over its own supply chain. Samsung is currently using LG Display for its OLED panels. If Samsung had its own OLED panel manufacturing facility, the company would be less dependent on a single supplier and would have more control over pricing.

Second, it will allow Samsung to differentiate its TVs from those of its competitors. OLED TVs are generally considered to be superior to LED TVs. By producing OLED panels in-house, Samsung will be able to offer better products to its customers.

Third, it would be a big boost for Samsung in the OLED TV market. Currently, LG Display is a leading manufacturer of OLED panels. If Samsung owns LG Display’s OLED panel business, the company could become a major OLED panel manufacturer and sell more OLED TVs.

Advocate for the Samsung-LG Display deal.

There are many benefits that LG Display can get from selling its OLED TV panel business to Samsung.

First, LG Display will be able to focus on other businesses. LG Display is a diversified company that also manufactures LCD panels, touch screens and other display products. Selling the OLED TV panel business would allow LG Display to focus on other businesses and invest in new technologies.

Second, there will be a large cash injection into LG Display. The deal is reportedly worth billions of dollars, so selling the OLED TV panel business would provide LG Display with a large cash injection. That money could be used to invest in new technology, pay off debt, or return to shareholders.

Samsung and LG OLEDs

Illustration of a hung Samsung TV
Photo credit: unsplash

Potential Downsides of Samsung’s Contract

There are also a number of downsides that Samsung and LG Display could face if the deal goes through.

First, the deal may be subject to regulatory scrutiny. The partnership will create a duopoly in the OLED TV panel market, with only two major manufacturers, Samsung and LG Display. This raises antitrust concerns and the deal could be blocked by regulators.

Second, the deal could lead to job losses. LG Display employs about 20,000 people in the OLED TV panel business. If the deal goes through, some of those jobs could be lost.

Third, the agreement may increase the price of OLED TVs. If Samsung becomes the only major manufacturer of OLED panels, OLED TV prices could rise. OLED TVs will then become unaffordable for consumers.

Overall, Samsung’s acquisition of LG Display’s OLED TV panel business has both positives and negatives. The deal will give Samsung a big boost in the OLED TV market, but it could also face regulatory scrutiny and lead to job losses. Ultimately, it’s up to Samsung and LG Display whether this deal is in their best interest.

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