ATLANTA, Sept. 18, 2024 /PRNewswire/ -- Vestel announced today that it has partnered with VIDAA as one of its strategic platforms for recurring revenues by signing an MoU to acquire a 4,64% ownership stake in the fastest growing Smart TV platform in the world. The acquisition will strengthen Vestel's position in the highly competitive Smart TV market and support the company's transition into an integrated provider of home solutions. The platform will serve as component of Vestel's integration of home appliances, Smart TVs, and energy solutions into a unified offering as part of Vestel's global ambitions.
Vestel's entry into the Smart TV operating system space as a shareholder marks an important milestone in their efforts to transition from a maker of devices and appliances to a provider of integrated solutions, which will allow the company to monetize on the lucrative smart home market, which is expected to grow by an average of 22,9% annually in the next 8 years. Vestel's capability to tap into this lucrative industry, valued at more than USD120 billion this year, will allow it to generate recurring revenues from devices it sells in the market, provide services to its growing customer base, and capitalize on the rich and extensive dataset generated by hundreds of millions of connected devices globally. This will allow not only a new revenue flow but will position Vestel as a key player in the future connected home where direct access to consumers will be the most valuable asset of any company in the industry.
By acquiring a stake in VIDAA, Vestel also formed an important partnership with Hisense, which initiated VIDAA International Holdings BV in 2019. Both companies are aligned in their belief that the industry needs an open platform like VIDAA to accelerate product development and enhance customer experiences across the globe. This strategic cooperation will also provide a quality foundation for potential cooperation in other fields, especially in the field of connected devices. Today VIDAA has over 30 million connected devices globally and was the fastest growing platform in 2023 according to Futuresource Consulting. It was also the second largest platform in sales in the first quarter of 2024 with a 7,8% global market share, according to the CTV Marketing Association. The platform is leveraging Hisense's and Toshiba's global growth as well as expanding to hundreds additional brands across the world.
The partnership with Vestel will allow VIDAA to strengthen its position in key global markets. At the same time, Vestel will have the opportunity to utilize one of the most advanced platforms ever developed, renowned for its speed, ease of use, and security in providing its customers access to global and local entertainment. A sustainable and future-proof turnkey solution with all the capabilities required of a future connected home platform, will allow Vestel to focus even more on designing the best products and transitioning its business towards a connected and interoperable future.
Ergün Güler, CEO of Vestel, highlighted that this partnership is in line with Vestel's global vision. "As the first Turkish company to take such a significant step in the world of TV platforms, we have achieved a major milestone in our global growth strategy. By partnering with VIDAA, the world's second-largest TV platform, we have taken a significant step towards our international goals". Güler further emphasized that their partnership with VIDAA International Holdings BV, which was initiated by Hisense, the second-largest TV manufacturer globally and the largest in China, exporting to over 160 countries, will position them prominently within the global TV platform ecosystem. "Hisense is a global powerhouse, not only in TV production but also with its innovative technologies and robust international sales network. Through this partnership, we will closely collaborate with Hisense, which is the main sponsor of UEFA EURO 2024 this year. The synergy between the two companies will allow us to make even greater strides in global markets," he added.
"When we established VIDAA, we promised our partners that VIDAA will be the most open platform in the industry and will welcome all partners to join as we will never compete with our OEM partners, content providers, and advertisers. Our goal is to provide the best marketplace in the industry for our partners to grow. With Vestel joining VIDAA today it shows how open we are to bring in additional partners to join VIDAA. We are proud to have a reputable company like Vestel become a shareholder in our company and join Hisense on this great journey," said Guy Edri, VIDAA's CEO.
As a part of the agreement Vestel will acquire a 4.64% interest in VIDAA International Holdings BV, the holding company of VIDAA, at a valuation of more than USD 1 billion. The transaction will be completed before the end of the year, making it one of VIDAA's leading strategic shareholders.
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