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The joint venture, called TP Vision, is expected to lessen the drag of Philips’ unprofitable TV business. Yet the primary goal is to elevate Philips into one of the top three players in the TV industry.
Philips CEO Frans van Houten said this “joint venture does not mean the end of Philips TVs, but a great future.” He added that since the TV industry is changing, Philips needed to team up with a partner.
Philips previously moved its monitor business into a joint venture with TPV, which became profitable in just two years. Martin de Vries, the man responsible for the venture, wants to repeat that success.
The venture involves some small changes: Philips television employees will have to move and work for TPV, while consumers will continue to see the Philips TV brands and designs.