Philips will transfer the rights of its North American LCD (Liquid Crystal Display) TV business to Japanese Funai, Reuters reported. The deal is valued at approximately 125 million Euros (US$197.2 million; US$1=0.6 Euro). Philips intends to concentrate its TV business on more profitable markets, such as Europe and emerging markets.

Pursuant to the terms of the deal, Philips will cease all TV sourcing, distribution, marketing, and sales activities in the North American consumer market and transfer all the said rights to Funai. The brand-licensing deal, projected to last for a minimum of five years, is scheduled to take effect on September 1, 2008. Funai is thus enabled to sell TVs under the dual brands of Philips and Magnavox in the United States and Canada. In return, Philips will receive royalty payments based on sales.