Boxee TV Purchased By Samsung for $30 Million But Will Lose Its Cloud DVR Service
Jul 05, 2013 03:18 PM EDT
Boxee, an Israeli and NYC-based media streaming and entertainment startup made headlines on Wednesday when unconfirmed reports said South Korean electronics giant Samsung would be acquiring the company for $30 million. On Friday, Boxee finally confirmed the news.
"We started on this journey six years ago, and have been at the forefront of the changing TV and video landscape. We believe that over the next few years the video market will change even more than it has in the past few decades," Boxee said. "Joining Samsung means we will be able to work on products that marry the best hardware and software in the TV space, products that will be used by tens of millions of people and will help to shape the future of TV."
Boxee went on to insist that the buyout would have almost no impact on current devices. However, the Cloud DCR functionality that has made the device so popular up to this point will go offline on July 10 as a result of the acquisition.
The biggest unconfirmed reports from the original news were the $30 million price tag that Samsung supposedly bought the startup for. Boxee also confirmed that number. The price is perfect Samsung. According to MaximumPC the price is small enough for Samsung to absorb if things don't work out but big enough to merit a large payoff if all things do go according to plan.
Samsung has been making a hard push into Internet-connected televisions, nicknamed "smart TVs," for some time now. Earlier this year, the New York Times reports the company said the majority of its sets would be smart TVs from here on out. Despite Samsung being a leader in smartphone technology, its smart TV interface has been lacking in the past years with many criticizing it for being impractical and difficult to use.