Philips are pushing the boundaries when it comes to HDTV design and grabbing tech headlines all over the place as a result. Just take a look at our Philips 58PFL9955H 3D Cinema 21:9 review to see why. However great press still isn’t turning into strong sales for the company, who are now having to re-think their HDTV arm due to heavy financial losses.
As a result, Philips will now be splitting TV production with display partner TPV, leaving Philips with just 30% of the business.
“Finding a solution for our Television business was our top priority and we strongly believe that the intended 30% / 70% 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. Philips has been active in the TV industry for many decades and the long-term strategic partnership with TPV shows our commitment to the continuity of Philips televisions for our consumers and trade partners.
The joint venture leverages the innovation and brand strength of Philips with the scale and manufacturing strength of TPV. Philips will receive a deferred purchase price and brand license income as part of the agreement. We expect certain costs in relation to the separation which will impact short-term earnings,” reads the Philips statement.
If things continue to go badly, Philips will have the option to sell their remaining share of the company in six years time. Philips made a loss of €87m over the last quarter, down €7m from the same period a year earlier.