It was nearly one year ago that Royal Philips announced its desire to reduce its reliance upon televisions. And now, it has finally gotten its wish.
The company today announced that the transaction to complete a joint venture with TP Vision (TPV) has finally happened, and the companies are now moving forward with offering sets to consumers around the world. TPV will own 70 percent of the venture, while Philips will control 30 percent of the new operation.
Philips and TPV announced their partnership last April. The companies initially planned to start their joint venture late last year, but the deal was delayed. Now that they have finalized the agreement, they can get down to selling televisions.
Under the terms of the deal, TPV will be responsible for all design, manufacturing, and sales related to the Philips-branded televisions. TPV will not sell the televisions in China, India, the U.S., Canada, Mexico, or "certain countries in South America." The companies didn't say how they will handle those markets.
TPV has the right to Philips' name for five years. If all goes well, the contract will automatically renew for another five years. After six years, Philips has the right to sell its 30 percent stake to TPV.