LG Ad Solutions, the connected TV (CTV) advertising platform subsidiary of LG Electronics formerly known as Alphonso, announced that its first-half revenue surged approximately 50% compared to the same period last year. The company demonstrated its steep growth trajectory by projecting full-year revenue in the range of roughly $850 million to $1 billion (~1.2 trillion to 1.4 trillion won).

Ashish Chordia, founder of Alphonso and a board member of LG Ad Solutions, detailed the growth of the U.S. CTV advertising market, the company’s business performance, and the status of its initial public offering (IPO) plans in a first-half letter released on the 5th.

Chordia assessed that the U.S. media market is rapidly restructuring around free ad-supported streaming TV (FAST) and CTV. Citing data from audience measurement firm Nielsen, he emphasized that FAST accounted for 6.1% of total U.S. TV viewing as of March this year, and notably surpassed Netflix in viewing time among audiences aged 65 and older. In May, streaming hit an all-time high, capturing 48.6% of total U.S. TV usage time.

The CTV advertising market is also experiencing explosive growth. According to market research firm eMarketer, the U.S. CTV ad market is projected to reach approximately $38 billion (~54.2 trillion won) this year and is expected to surpass the traditional TV advertising market by 2028.

Chordia cited recent major M&A activity in the industry, noting that the value of platforms, ad tech, and first-party data is increasing. Notable examples included Fox’s acquisition of Roku and Walmart’s acquisition of the CTV advertising platform Vibe. “TV manufacturers are no longer just hardware companies; they are evolving into media platform companies that combine operating systems, advertising, and data,” he explained.

In line with these market shifts, LG Ad Solutions is pursuing aggressive business expansion. The company launched new advertising products leveraging the LG Smart TV home screen, including ‘Seamless Home Screen’ and ‘Live TV Tune-in Preview.’ It also expanded home screen advertising partnerships with global ad platform Teads and introduced gaming ad solutions through its subsidiary Aarki. The company continues to expand content on its proprietary FAST service, ‘LG Channels.’

Regarding the closely watched IPO plans, Chordia expressed unwavering commitment. He explained that the ongoing tender offer is a procedure stipulated by a shareholder agreement signed when LG Electronics invested in Alphonso in 2020, designed to provide certain existing shareholders with an opportunity to sell their stakes. “Once the tender offer is completed, we plan to begin full-scale IPO preparations,” he stated, adding emphatically that “there is absolutely no change in our long-term plan to go public.”

However, the path to an IPO is not without obstacles. According to investment banking industry sources, a lawsuit between LG Electronics and minority shareholders currently underway in the Delaware Court remains a variable. The court recently denied a motion to compel arbitration filed by LG Electronics, meaning the case will proceed to a trial on the merits. The trial is scheduled for June 2027, and the outcome could potentially impact LG Ad Solutions’ valuation and IPO timeline.

Despite this, some in the investment banking industry suggest that if the trend of increasing CTV platform value continues, it could positively influence LG Ad Solutions’ valuation and IPO prospects. With its vast trove of viewership data and sophisticated targeting technology built on webOS, LG Electronics’ smart TV operating system, LG Ad Solutions is expected to be a key beneficiary of the digital transformation sweeping the advertising market.