Belkin TV, a unit of LG Electronics, will buy the Korean company’s TV division for about $1 billion.
The deal includes Belkin, a maker of smart televisions and other televisions, and its cable, wireless and Internet business.
The Belkin deal will be completed in 2018, and the company said it would use the cash to expand the global portfolio.
LG Electronics and Samsung Electronics are the world’s largest TV manufacturers.
The Samsung unit will be headquartered in Seoul, where it plans to expand its mobile and digital media businesses.
Belkin has said it plans a strong 2017.
The new deal will create the worlds largest video streaming service, the first such service in the United States, the company’s president said in a statement.
The U.S. companies are working together on a new television product that will compete against Amazon Prime, a service that allows consumers to buy a range of TV channels from Amazon.com.