Korean electronics giant Samsung has bought Israeli firm Boxee, a maker of highly popular media streamers, as part of efforts to improve the overall user experience across its connected devices.
Boxee states that it is working hard to ensure there will be minimal impact to existing owners of Boxee devices, but the beta Cloud DVR functionality will be discontinued on July 10th, with no recordings to be available after that date.
Online Israeli news source The Maker claims that Samsung closed the deal for US$ 30mn, although this figure has not yet been confirmed. With offices in New York and Tel Aviv, Boxee was founded in 2007 and has previously raised US$ 27.5mn in three funding rounds from US and Israeli investors.
Commenting on the deal, Paul Jackson, principal analyst at Informa Telecoms & Media (publisher of IP&TV News), said that it could help Samsung increase consumer appetite for its connected TV devices and services.
“Boxee has been playing with its own TV user interface and has a good reputation for making a link between its hardware and a back-end service,” said Jackon.
“But it’s still early days for cloud TV services and it’s been difficult for Boxee to make money. It makes more sense for it to be part of a wider offering rather than selling itself as a single function device.”