Samsung acquires Boxee for approximately $30 million
Last week, Samsung Electronics confirmed reports that it had acquired the video startup Boxee. A company spokeswoman did not specify the price, but a report by The Marker, an Israeli website, said that the transaction was valued at $30 million.
Israel- and New York City-based Boxee is a video streaming media and entertainment company and, according to The New York Times, the partnership will help Samsung strengthen its software for internet-connected televisions.
"Samsung has acquired key talent and assets from Boxee," a company spokeswoman said in a statement. "This will help us continue to improve the overall user experience across our connected devices."
The Times article added that Samsung has been criticized in the past for its smartphone and Smart TV software, with customers complaining that it was difficult to use.
A TechCrunch article speculated that the technology acquisition could not only improve Samsung's Smart TV capabilities, but also boost its set-top devices that can stream media. This would apply to mobile devices such as smartphone and cloud DVR systems.
According to TechCrunch, Boxee debuted last October as a Walmart-exclusive product, and charged customers $10 per month for DVR capabilities. Since then, the organization has made updates that account for 3D content and DLNA streaming. While it is unclear how the acquisition will affect the physical Boxee device, the news source explained that the startup company's experience and technological capabilities will be immensely helpful to Samsung's growth.
Software mergers and acquisitions can help all companies involved in the transaction, as well as their customers. As this situation shows, Boxee will benefit from reaching a larger consumer base through Samsung and the electronic giant will be able to improve what it has to offer clients.