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AFTER 83 YEARS, PHILIPS LEAVING TV BUSINESS

April 19, 2011 by · 2 Comments 

Amsterdam-based electronics giant Philips, which has been manufacturing TV sets longer than any other company, is spinning off its TV business into a joint venture with China’s TPV Technology. The company, which unveiled its first TV model in 1928, said that it would hold a 30 percent stake in the new company, while TPV would hold the remaining 70 percent. It also said that it retained an option to sell its stake to TPV after six years. Philips, which posted a 31-percent drop in first-quarter profits on Monday, said that its TV division has recorded losses of nearly $1.5 billion since the start of 2007. In an interview with the London Independent, Philips spokesman Steve Klink said, “We have to be realistic. Profitability has been an issue for us. The TV industry at large is under pressure and we needed to find a structural solution to go forward with. This announcement will give our business new life.”