Acquisition of CJ HelloVision Approved
LG Uplus has become a comprehensive media platform provider by absorbing CJ HelloVision, the number one cable TV operator in Korea. The Ministry of Science and ICT approved LG Uplus's acquisition of CJ HelloVision on Dec. 13.
LG Uplus expects to increase its mobile service users based on CJ Hellovision's 4.04 million cable service customers. It also plans to develop products combining broadcasting and telecommunications.
LG Uplus will invest 2.5 trillion won over five years to produce content and develop wired and wireless convergence technologies.
Apart from this, the company will invest more than 190 billion won over five years to strengthen CJ HelloVision's local news and information programs. In addition, LG Uplus is planning to boost efficiency by cooperating with CJ HelloVision in building network infrastructure. CJ HelloVision is planning to invest 620 billion won for five years to improve its cable TV service quality.
LG Uplus plans to develop IPTV and cable TV platforms as two competing services. It will upgrade LG HelloVision’s broadcasting platform by expanding its service coverage, increasing the number of 8VSB channels, and upgrading its digital TV quality to the HD level. Moreover, the two companies plan to provide high-quality content to local customers by working closely with each other in joint supply and production of content.