Alphonso, the Silicon Valley-based company powering LG Electronics’ connected TV (CTV) advertising solutions, announced its intention to pursue an initial public offering (IPO). This announcement comes after a period of significant growth and a legal battle with its majority shareholder, LG Electronics. The company, which operates LG Ad Solutions, leverages LG’s webOS platform, installed in over 220 million TVs globally, to deliver targeted advertising based on real-time viewer data. Alphonso’s co-founder, Ashish Chordia, highlighted the company’s crucial role in LG’s broader smart TV strategy, integrating content, advertising, commerce, and AI.
Alphonso’s success is largely attributed to its proprietary automatic content recognition (ACR) technology. This technology allows advertisers to gain granular insights into viewer behavior, enabling efficient campaign management within a single integrated system. This technology, coupled with the explosive growth of the CTV market, has fueled Alphonso’s impressive revenue growth, exceeding 40% annually between 2022 and 2024. Chordia estimates the global CTV market’s value at $1 trillion, further emphasizing the lucrative potential of the CTV advertising space.
The path to the IPO, however, has been complex. Following LG Electronics’ acquisition of a majority stake in 2020, disagreements arose regarding the timing and specifics of the IPO. Legal disputes ensued, culminating in lawsuits filed by Alphonso’s co-founders, including Chordia, who accused LG of breaching contracts and attempting a hostile takeover. These disputes involved conflicts over board membership. However, a Delaware court ruling in March 2024 sided with Alphonso, ordering the restoration of their IPO rights and minority shareholder protections.
While the legal battle is not entirely concluded, Chordia expressed optimism about the future, stating that the majority of disputes are behind them and that both parties are focused on capitalizing on the substantial growth opportunity in the CTV advertising market. Alphonso has filed a registration statement with the U.S. Securities and Exchange Commission, initiating the IPO process, although specific details regarding timelines and share offerings remain undisclosed. The company anticipates significant benefits for shareholders based on the projected growth trajectory.
