- LG acquires 80% of Athom to enhance AI-driven smart home solutions, with plans to buy the remaining 20% within three years.
- The acquisition supports LG’s transition to a software-based platform, aiming to create personalised AI home environments and expand their ecosystem.
OUR TAKE
LG’s acquisition of Athom signals a significant shift in the smart home industry. By integrating AI to create personalised environments, LG aims to lead the experience economy and transform homes into intelligent, responsive spaces. This strategic move has the potential to redefine consumer expectations and set new industry standards.
–Jasmine Zhang, BTW reporter
What happened
LG has acquired an 80% stake in Athom, a Netherlands-based smart home platform company, and plans to purchase the remaining 20% within three years. Announced on Wednesday, this acquisition aims to integrate Athom’s connectivity capabilities with LG’s AI-enabled ThinQ platform, creating personalised AI home environments. Jung Ki-hyun, LG’s executive vice president, stated that the acquisition is pivotal for LG’s AI home business and will expand their ecosystem and integration services.
Founded in 2014, Athom is known for its smart home hub “Homey”, which connects over 50,000 devices and supports various connection methods. The Homey App Store offers around 1,000 applications for home device control. LG will leverage this acquisition to enhance third-party device integration and personalised services while Athom continues to operate independently.
This aligns with LG’s strategy to transition from hardware to software-based platforms, aiming to become a “Smart Life Solution Company”. The global smart home market is projected to grow significantly, reaching $260.24 billion by 2028.
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Why it’s important
LG’s acquisition of an 80% stake in Athom is a major step forward for LG in the field of Internet of Things. LG’s goal is to create a highly personalised home environment by combining Athom’s powerful connectivity capabilities with LG’s AI ThinQ platform, which perfectly aligns with LG’s goal of becoming a “smart living solutions company.”
This strategic move puts LG at the forefront of the experience economy, where consumers increasingly value immersive and integrated home experiences. Athom’s Homey Pro can connect more than 50,000 devices and supports multiple connectivity methods, which, combined with its extensive application ecosystem, complement LG’s vision of a seamless smart home.
It is reported that LG has been developing Internet of Things technology for more than ten years. From integrating Line with LG’s own HomeChat service in 2013, allowing users to control their appliances through Line, to today’s acquisition of Dutch smart home platform athom. LG’s moves have always been cutting-edge and visionary. If executed properly, this could not only make homes smarter, it could even make appliances a true smart companion in our daily lives.
