Our Company has signed a letter of intent to acquire a 4.64% stake in VIDAA International Holdings BV, the owner of VIDAA, a leading smart TV operating system and streaming platform with the aim to enhance its competitive edge in the platform world, which has become the key factor in consumer choices in TV purchases and position itself as a key player in the TV ecosystem. VIDAA International Holdings BV is a subsidiary of Hisense, the world's second largest and China's largest TV manufacturer. Discussions between the parties are ongoing.
Currently, there are over 30 million smart TVs in the market running on the VIDAA operating system, making it the second-largest TV operating platform in the world with an approximately 8% global market share.
Through this partnership, Vestel aims to enrich its existing global TV platform portfolio and solidify its position in the global TV platform ecosystem. VIDAA's innovative interface and rich content will enable the development of new product ranges for new markets and customers, contributing to Vestel's global growth strategy. It will also open doors for new collaborations with the brands and retailers using the VIDAA operating system.
Upon completion of the share transfer, Vestel and VIDAA International Holdings BV will enter into an advertising revenue-sharing agreement, which will allow Vestel to generate advertising revenues based on the sales of TVs carrying the VIDAA's platform. With this agreement Vestel will generate recurring advertising revenues in addition to its TV sales revenues. According to Omdia, a global technology research and advisory firm, global advertising revenues from smart TV devices amounted to US$31.5 billion as of 2023 and are expected to reach US$49 billion in 2025. Developments will be shared with the public in full and on time.
This statement was translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.