Philips Electronics sold the audio and video business to Funai Electric of Japan in the deal which would lead to the exit of the former from consumer electronics completely. Philips would now focus on the healthcare sector and home appliances.
For several years, the Dutch company Philips Electronics has remained a well known name in the household across the world. It sold CD players, cassettes as well as TV sets for several years but with most of the consumers shifting to the online media for games, music and films, Philips decided that it would exit the home entertainment business completely.
Philips competed with the other lower-cost Asian manufacturers such as LG Electronics and Samsung. In 2012, Philips hived off its diminishing television business by establishing the joint venture with Hong Kong’s TPV. Now, the acquisition of audio and video operations of Philips Electronics by Funai Electric for more than 202 million US dollar will completely exit Philips.
The deal will finally close by the end of 2013 and the video business will be transferred to Funai Electric in 2017.