Amsterdam, Jan 30 : Dutch company Philips is selling its audio and video business to Japan's Funai electroc in a deal that will mark its complete exit from consumer electronics business.
Philips ws a familiar household name for its TV sets, cassettes and Cd players, but it could not withstand competition from low-cost Korean manufacturers like Samsung and LG Electronics, and had to cut costs and sell assets over the past two years.
With more consumers going online for music, films and games rather than buying CDs and DVDs, Philips decided to get out of home entertainment even though it was profitable last year, chief executive Frans van Houten said on Tuesday.
Philips had hived off its ailing TV business by setting up a joint venture with Hong Kong's TPV last year.
Now the sale of its audio and video operations for $202 million plus licence fees to Funai takes the rest of electronics out of the Philips name, except for a remote-control business.
The deal for audio, multimedia and accessories will be closed by 2013-end,while the video business will be transferred in 2017.