Processing .....please wait.. 
The article has been forwarded.... 
Phillips to hive off its TV business to TPV for profit
By siliconindia
|
Tuesday, 19 April 2011, 18:12 IST
Bangalore: Phillips, one of the leading Health and Wellbeing Company, is hiving off its loss making television business to a 30/70 joint venture with Hong-Kong based monitor maker TPV . TPV, which controls about 33 percent of the global computer monitor market, posted a near 20 percent rise in 2010 profit.
A Dutch based company, Phillips has struggled to compete with many companies like the Samsung and LG electronics to come up and be recognized in the market. Due to the grave loss in the television business of Phillips, the new CEO has decided to hand it over to TPV, the largest monitor making company in the world. These could include the audiovisual and multimedia business, which Philips said would be merged into its lifestyle entertainment unit in Hong Kong.
The TV unit, which makes up less than 10 percent of group sales, has gone from being a global leader to a thorn in the firm's side, having notched up losses of almost a billion Euros since the beginning of 2007.
The CEO said, the new joint venture "will enable a return to profitability for the television business and an increased portfolio focus for Philips in health and well-being." Philips said TPV will purchase 70 percent of the shares in the joint venture for a deferred purchase price.
Lately, Phillips shares opened lower in the news, and it was down by 1 percent in the market. Which resulted in Philips not giving a value for the TV deal, saying it would receive a deferred payment from TVP. The CEO has aimed at increasing the revenue of the company and hence has chalked out various strategic plans for the betterment of the company.
Concerning the employment of the TV business section, Phillips said that all 3,600 employees at the TV business would transfer to the Hong Kong Company, and job cuts could not be ruled out.currently the share price of phillips is 20.90 Euros.