LG Electronics bought U.S. based Zenith Electronics back in 1995. It looked for a long time that the $500 million LG spent for Zenith have been a bad investment.
Things have turned around though for Zenith. The company is now making sizable profits from the digital TV market.
Zenith developed the 8-VSB digital transmission system at the heart of the ATSC DTV standard adopted by the FCC. The company holds numerous patents essential to the production of over-the-air digital television receivers.
Other digital TV manufacturers pay $5 per TV license fee to Zenith. Zenith recorded $25 million in sales last year, and the figure doubled to $50 million this year without requiring any further investment. The digital TV market is expected to grow over 30% next year. So it looks like LG is getting back their $500 million and maybe some more.
More details on Chosun.
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