Samsung acquires Boxee for 30M smarter TVs coming

first_imgUpdate: 1:58PM: Looks like this has been confirmed, though there has been no official word from Boxee yet.According to multiple reports, Samsung has acquired streaming video company Boxee for $30 million. Sources say the negotiations were airtight and the deal is already completely done. The acquisition will apparently see the 45-person Boxee team working under Samsung’s direct management.Boxee began working on hardware several years ago, after making a popular software-only solution. The first Boxee Box was not a huge hit, but the company gave it another go late last year with the Boxee Cloud DVR. The acquisition price of $30 million might sound high, but the cost of making hardware is astronomical. Boxee is funded somewhere in the neighborhood of $26.5 million already.One major upside of the deal is that Samsung is a hardware behemoth. It makes almost every kind of component, so any future streaming devices from the Boxee team could be made more cheaply. The Boxee TV (later renamed Boxee Cloud DVR) was launched at $99 in late 2012, and was made by D-Link. The online DVR service requires a $10 per month subscription and is only in limited markets. It is unclear what will happen to this service in the wake of the acquisition.Samsung might be interested in the Tel Aviv-based start up largely for its software platform — not hardware. The Korean electronics giant really wants everyone to buy smart TVs, but the software experience has been fairly bad thus far. Loading Boxee software on these devices could be a good strategy.We’ve reached out to Boxee for comment, but it’s doubtful we’ll get anything useful until the deal is officially announced.Update: For what it’s worth, Boxee did get back to use to confirm the acquisition. A full statement will be made later this week.last_img

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