Advertisement

bo

Bang & Olufsen outsources TV production to LG

The Local Denmark
The Local Denmark - [email protected]
Bang & Olufsen outsources TV production to LG
A B&O employee assembles a 105-inch TV in Struer. Photo: Henning Bagger/Scanpix

Bang & Olufsen, the Danish maker of upmarket sound systems and televisions, said on Friday it had entered a partnership with LG Electronics to outsource its production of televisions.

Advertisement

The struggling Danish firm, which said in November it was in talks with a potential buyer, said the deal "will address Bang & Olufsen's key challenges related to scale and complexity".
 
It would enable the group "to stay at the forefront of innovation in the TV category, a category which is currently undergoing significant change," chief executive Tue Mantoni said in a statement.
 
The group, which also makes sleekly designed speakers, soundsystems and headphones, said it would now focus on its core know-how in design and acoustics.
 
The move would result in annual savings of between 150 and 200 million kroner ($23 million-$30 million, €20-27 million), it said.
 
The partnership's first TV using organic light-emitting diode (OLED) displays -- screens that deliver a more vivid picture quality and consume less electricity -- is expected to be launched next year.
 
In February, South Korean LG unveiled its first modular smartphone, the G5, which came with a sound system developed by Bang & Olufsen.
 
Shares in the Danish company soared in November after it said it was in talks over a potential takeover offer.
 
On Friday it said that the talks were continuing but that no binding offer had been made.
 
Founded in 1925, the Copenhagen-based company has posted annual losses over the past three fiscal years as more people listen to music on their mobile devices and after failing to attract younger consumers.

More

#bo

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also