After Philips sold the TV division to TPV Technology, they sold the remnants of the AV division, such as Blu-ray, sound systems and accessories, to Japanese Funai for 150 million Euro. But the deal has been foiled. Philips will take legal action against Funai.
Philips' sale of AV division foiled
Philips wanted to focus on healthcare, lighting and consumer appliances, so they decided to sell all other division. They initially sold the TV division to TPV Technology from Hong Kong, and afterwards sold the AV division (Blu-rays, sound systems and accessories) to Funai.
Philips will continue to produce Blu-ray players and sound systems after the deal with Funai has fallen through
However, the deal has fallen through. According to Philips, Funai has refused to fulfill its part of the contract by “refusing to take the necessary steps to enable completion of the transaction and the transfer of the business”. Philips will take legal action to recover damages, they say. Funai has not yet commented on the matter, and it remains unclear why they have decided to pull out of the deal.
The issues will not affect Philips’ sale of the TV division to TPV technology, and will not affect the current deal with Funai that allows them to sell TVs under the Philips’ brand in North America. Philips will regain control of the AV division and rename it to WOOX Innovations. WOOX will be headquartered in Hong Kong with 2000 employees, with an annual turnover of 1.2 billion Euros.
Philips will continue to investigate other potential buyers.