Philips sells home entertainment business to Funai for $202 million

Philips has sold its audio and video entertainment business to Funai for $202 million (plus licence fees), and has transferred the lucrative product line to the Japanese company, Reuters reported. The deal nearly completes the electronics giant’s exit from the home entertainment business, which leaves it free to focus on the more profitable home appliances and health-care product lines.The Dutch company is a household name in India thanks to its high-quality television sets, cassette players, music systems, speakers and iPod docks. But the company has lately struggled to compete with Asian manufacturing giants like Samsung and LG, and has had to cut costs and sell assets over the last two years. Philips last year diverted its television business by setting up a JV with Hong Kong-based TPV.

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