Philips brings its television businesses in a joint venture with the Chinese company TPV Technology Limited. Philips gets a share of 30 percent in the newly formed group, which has the right to the Philips name.
Philips was already a plan to televisietak of the hand and the contours of the current agreement were the beginning of this year already outlined. Now, the company makes known that the signature under the final agreement. The joint venture will be responsible for design, manufacture, distribution, marketing and sales of Philips tvs. The 3500 members of staff and the business units, including the tv headquarters, to be transferred to the new company.
The joint venture has the right to five years, the brand name Philips; a period which, with a further five year period if certain performance goals are achieved. After six years, it may Philips of its interest of 30 percent in sales. The Dutch electronics group provides the partnership with TPV of a loan of 100 million euro, in addition to a contribution in the marketing expenses of eur 185 million. Philips should, as a result of the agreement, in the fourth quarter of 270 million euro, flush, in addition to the 110 million euros, which in previous quarters have already been cancelled.
Philips is in the middle of a bezuinigingsperiode, which, among other 4500 job cuts, including 1400 in the Netherlands. Also other elektronicaconcerns sit down with their televisieonderdelen in their stomach. So would Sony from a joint venture with Samsung want steps and see also Panasonic were forced to heavily in the cost-cutting.