Back in April, Philips announced a plan to stop own production of TVs by selling their TV brand to Hong Kong-based TPV Technology. The deal has now been finalized.
Philips completes sale of TV division
Philips has finalized the sale of their TV division to TPV Technology. The deal has been spurred by huge losses in the TV division. The sale was announced back in April but Philips seemed to waver on the decision for a few months - but the sale has now been finalized. Formally, the two companies establish a new joint venture company. TPV will own 70% of the shares and Philips 30 %.
IPV Technology now controls the Philips TV brand
TPV will have full control over production of TVs with the Philips brand, design and technologies. TPV will also be responsible for daily operations, and gain control over research & development, and employees. Philips will receive a royalty for each TV sold.
Philipsâ€™ Frans van Houten says; - â€śThis joint venture leverages the strengths of both companies to improve the position of Philips Television in the market. It enables Philips to focus on expanding market leadership positions across our Healthcare, Consumer Lifestyle and Lighting sectorsâ€ť
The new joint venture company will begin working on products in 2012, based on current research and development at Philips. All Philipsâ€™ 2011 TVs are 100 % developed by Philips.
There has been no mention of what to expect in future Philips TVs. Today, Philips use unique technologies such as the 21:9 format and Ambilight.
Philips is the only TV manufacturer struggling to become profitable. Other TV manufacturers are also fighting with huge losses. Recently Sony and Panasonic have made significant changes to the TV divisions.