Seems like Philips’ TV making days are over. Chief Executive Officer Frans Van Houten, who took over the reins of the business just at the start of this month has outlined a new plan to try and get the Amsterdam based company back on track after sustaining a large loss of 87 million euros from TVs in the first quarter. Instead, the company will bundle its TVs into a partnership that will be 70 percent owned by Hong-Kong-based TPV Technology Ltd. Philips will retain the rest and will receive royalty payments of at least 50 million euros ($72 million) annually from 2013 onwards.
The move yielded positive results, with Philips’ stock gaining as much as 55 cents, or 2.6 percent, to 21.64 euros, the most since Jan. 11. The stock, which traded at 21.66 euros, has lost 5.5 percent so far this year, valuing Philips at about 21.36 billion euros.
Source: Bloomberg