Philips takes step away from TV business
A poor first quarter from Philips has seen the Dutch tech giant
divest 70 per cent of its television business to partner TPV.
A
divestment is effectively the opposite of an investment, and in this
case it means that Philips is moving its television arm into a joint
venture.
Philips TV will now be run as a 30 per cent/70 per cent
venture with monitor maker TPV, as new chief executive and acknowledged
restructuring expert Frans van Houten made a key change.
Solution
"Finding
a solution for our television business was our top priority and we
strongly believe that the intended 30 percent-70 percent joint venture
with TPV that was announced today will enable a return to profitability
for the television business, and an increased portfolio focus for
Philips in health and well- being," said van Houten.
It is not
entirely clear what long term impact this will have on Philips
televisions, although significant changes are expected.
The Dutch
giant could sell on the remaining 30 per cent of its stake in six
year's time, which would mean it has left the now notoriously tough TV
business entirely.
The first quarter saw Philips make a profit of
€138 million (£122m) which was well below market expectations.
Via Reuters
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