Philips has sold off its home entertainment business to Japan's Funai Electric for £130m, allowing the Dutch company to focus on home appliences and healthcare products as part of a restructuring plan.
The company reported a €355m loss for the last three months of 2012, but has already taken steps to restructure its business. The loss-making TV division was transferred to a joint venture agreement with Hong Kong company TPV in March 2012.
Philips will now focus on products like shavers, toasters, coffee makers and lightbulbs.
"With consumers going online for music, films and games rather than buying CDs and DVDs, Philips decided to get out of home entertainment even though it was profitable last year," Philips chief executive Frans van Houten told Reuters.
Philips isn't making this change overnight, the audio side of its business will pass to Funai by the end of the year but the video side will not pass over until 2017.
The company performed better than expected last year and has said it is on track to achieve its end-2013 targets of sales growth, so we assume a lot of people out there must need new toasters.