is reportedly selling off 70 percent of its European TV operations to Hong Kong-based TV and PC monitor manufacturer TPV to help curb profit declines.
Under the plan, the company's TV operations will be run as a 30/70 joint venture with TPV, with Philips keeping the option of selling off the remaining 30 percent to TPV at a later date, according to a report from Reuters, Monday.
Philips previously licensed off the use of the Philips and Magnavox TV brands in the U.S. to Japan-based Funai. It currently licenses the brand to TPV in China and Videocom in India.
The decision was made by new company CEO Frans van Houten, who is in the process of accessing profitability of the company's more than 400 businesses.
All 3,600 employees at the TV business will transfer to the Hong Kong company.
Philips said TPV will purchase the 70 percent shares in the joint venture for a deferred purchase price, equal to four times the joint venture's EBIT over the years 2012 until the year Philips exercises its right to receive the purchase price.
Philips also has an option to sell the remaining 30 percent stake to TPV for the same terms after six years.