Philips Opts Out of LCD TV Business, Funai Takes Over
On April 8, 2008, Royal Philips Electronics announced a five-year brand licensing agreement with Funai. Funai will assume responsibility for sourcing, distribution, marketing and sales of all Philips’ consumer TV activities in the US and Canada. The licensing agreement will take effect on September 1, 2008. Philips will receive royalty payments for Funai’s right to use the brand names Philips and Magnavox in Canada and the US. Philips will take a E125 million charge to cover the cost associated with the transfer. Philips will in turn focus on its TV business in Europe and emerging markets.