Philips is transferring its struggling TV business into a joint venture with TPV Technology, a Chinese display solution provider.
TPV will own 70% of the new company and Philips will license its brand name and take the remaining 30%.
“The partnership will help create the scale and focus needed for our television business to return to profitability and to be successful in a very dynamic television industry,” said Frans van Houten, chief executive officer of Philips.
The joint venture will be responsible for the design, manufacturing, distribution, marketing and sales of Philips’ television business worldwide, with the exception of mainland China, India, United States, Canada, Mexico and certain countries in South America.
Existing brand license agreements in China, India and North America will not move to the joint venture.