Royal Philips Electronics has announced that it will be selling off the remainder of its entertainment business to Japanese electronics company Funai for €150 million ($201 million). Funai had already bought Philips’ North American Blu-ray/DVD and TV operations over the last few years, but now it will lay claim to the Dutch company’s audio, multimedia, and video operations as well.
Funai will pay an additional fee to keep the Philips brand, which it will keep on its new entertainment products for at least the next five years. The majority of the deal is expected to be done in the second half of this year, although licensing agreements will keep the video segment from transferring to Funai until 2017.
The sale continues Philips’ years-long effort to minimalize its efforts in the consumer electronics space. Instead, it will focus on segments like healthcare and lighting, where it has seen more profitable returns than in the highly-competitive TV, audio, and video markets. The company will still sell smaller appliances like shaving kits and coffee makers for now, however. Last year, Philips sold off the remainder of its TV operations to Hong Kong company TPV.