> Royal Philips Electronics NV (PHIA), 50 years after unveiling the
> compact cassette for music mixtapes, agreed to sell its audio and
> video unit to focus on more profitable cancer scanners and
> energy-saving light bulbs.
>
> Japan’s Funai Electric Co. will pay 150 million euros ($202 million)
> in cash and a license fee for the Lifestyle Entertainment unit, said
> Amsterdam-based Philips, which also invented the compact disc with
> Sony Corp. The deal is part of a revamp that helped quarterly
> profit beat analysts’ estimates.
>
> Philips Chief Executive Officer Frans van Houten is pushing the
> manufacturer into high-margin areas such as lighting products that
> save energy and health- and wellness offerings to move away from its
> consumer-electronics past...
>
> “Lifestyle entertainment has been an absolute underperformer in the
> consumer lifestyle business,” said Rabobank analyst Hans Slob, who
> has a “buy” rating on the stock. “It’s definitely positive news Van
> Houten is taking more steps to improve the margins, by divesting this
> low-margin business.”
>
> The deal for the audio unit will probably close in the second half of
> 2013, while the video business will transfer in 2017 because of
> intellectual property licensing arrangements, Philips said.
Philips Sells DVD Business as Health Demand Boosts Profit
> compact cassette for music mixtapes, agreed to sell its audio and
> video unit to focus on more profitable cancer scanners and
> energy-saving light bulbs.
>
> Japan’s Funai Electric Co. will pay 150 million euros ($202 million)
> in cash and a license fee for the Lifestyle Entertainment unit, said
> Amsterdam-based Philips, which also invented the compact disc with
> Sony Corp. The deal is part of a revamp that helped quarterly
> profit beat analysts’ estimates.
>
> Philips Chief Executive Officer Frans van Houten is pushing the
> manufacturer into high-margin areas such as lighting products that
> save energy and health- and wellness offerings to move away from its
> consumer-electronics past...
>
> “Lifestyle entertainment has been an absolute underperformer in the
> consumer lifestyle business,” said Rabobank analyst Hans Slob, who
> has a “buy” rating on the stock. “It’s definitely positive news Van
> Houten is taking more steps to improve the margins, by divesting this
> low-margin business.”
>
> The deal for the audio unit will probably close in the second half of
> 2013, while the video business will transfer in 2017 because of
> intellectual property licensing arrangements, Philips said.
Philips Sells DVD Business as Health Demand Boosts Profit