LG has fired the CEO and CEO of its ad tech division

The management team is out at LG Ads Solutions.

LG Ads (née Alphonso) is the advertising technology division of South Korean electronics manufacturer LG. In the year It came under the LG fold in January 2021 after LG took a majority stake in Alfonso for $80 million (and a bit higher).

AdExchanger has learned that at least two of Alfonso’s top Brazilians have been pushed out as of Friday, including CEO Raghu Kodij and Alfonso’s founder and CEO Ashish Chordia. An LG spokesperson confirmed the withdrawal.

Alphonso’s co-founder, Codej, will be replaced by Adam Sexton as CEO, effective immediately. Sexton will take the newly created position of chief operating officer.

Although Sexton has executive experience in the TV space, including as former GM of Samsung, his most recent industry experience was as GM at Gracenote for a year between 2014 and 2015, several years before the company was acquired by Nielsen.

And the origins may not stop at Kodige and Chordia. Although AdExchanger could not confirm in time for publication, it appears that other C-level leaders in the LG Ads team have also been fired.

No IPO.

But this shake-up isn’t about any clamor for an exit from LG’s ad tech, or about ACR data underpinning its ad business.

According to LG, the move is the start of a “strategic shift” to position LG Ads for further growth.

But one has to wonder how cutting Alfonso’s leadership team will help with that. The group has tripled its revenue this year.

LG Ads/Alphonso It generated nearly $100 million in 2021, its first year under LG. AdExchanger has learned that the group brought in about $300 million in revenue this year and is aiming to bring in more than $500 million in revenue by 2023.

Despite Alfonso’s majority control of LG, the deal is designed to give Alfonso the option to take himself public within five years from January 2021. If this happens, LG will get its equity but lose future profits unless it opts out. To raise the stake or issue a premium to buy the rest of Alfonso.

Rebooting the management could be one way to keep the LG Ads division in LG.

Bet on ACR

Back on the official LG line, an LG spokesperson said it will continue to invest in its ad tech division.

The core offering is a targeted solution based on ACR’s opt-in data set on 30 million US households. That information comes mostly from LG smart TVs and Alphonso’s OEM partners, including Sharp, Hisense and Toshiba.

LG Ads has AI-based solutions for audience targeting and optimization and campaign measurement tools. Advertisers can work with LG Ads to buy inventory across LG TVs.

Despite the privacy concerns associated with ACR data — it’s not always clear, for example, how kosher and informed exactly those smart TV opt-ins are — LG seems to be going all in on ACR.

In the statement It was released after a request from AdExchangerMatthew Durgin, chairman of the board of Alphonso and senior director of LG Electronics USA, said the changes will strengthen the relationship between Alphonso and LG Ad Solutions and LG Electronics. Under its new leadership, LG plans to “further enhance the company’s ACR capabilities.”