A poor first quarter from Philips has seen the Dutch tech giant divest 70 per cent of its television business to partner TPV.

A divestment is effectively the opposite of an investment, and in this case it means that Philips is moving its television arm into a joint venture.

Philips TV will now be run as a 30 per cent/70 per cent venture with monitor maker TPV, as new chief executive and acknowledged restructuring expert Frans van Houten made a key change.

Solution

"Finding a solution for our television business was our top priority and we strongly believe that the intended 30 percent-70 percent joint venture with TPV that was announced today will enable a return to profitability for the television business, and an increased portfolio focus for Philips in health and well- being," said van Houten.

It is not entirely clear what long term impact this will have on Philips televisions, although significant changes are expected.

The Dutch giant could sell on the remaining 30 per cent of its stake in six year's time, which would mean it has left the now notoriously tough TV business entirely.

The first quarter saw Philips make a profit of €138 million (£122m) which was well below market expectations.

Via Reuters