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Philips to sell stake in LG.Philips

Written by James Delahunty (Google+) @ 23 May 2007 19:34 User comments (8)

Philips to sell stake in LG.Philips According to reports on Tuesday, Royal Philips Electronics NV is currently in talks to sell its stake (33%) in flat-panel display maker LG.Philips. The move could bring the company 3.7 billion (US$5 billion) in proceeds. The company has faced oversupply in the market for LCD and is also being investigated by U.S. and Asian regulators for anticompetitive practices.
Gerard Kleisterlee, President and Chief Executive Officer (CEO) of Philips was quoted as saying the company was in talks with "LG.Philips and other parties," on the disposal. Philips' lockup period on its stake ends in July, and the company has revealed plans to sell in the past. LG.Philips has a market capitalization of roughly 11 billion (US$15 billion).

LG.Philips posted a first quarter net loss of US$180 million (133 million), tightening from a loss of US$185 million a year earlier.

Source:
Expatica

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8 user comments

124.5.2007 0:54

Mm is Phillips leaving LG?

224.5.2007 6:06

To me this would be a wise move on phillips side cause LG is a crappy screen maker. This is a personal view i find LG to be like the CMAG of the LCD screen world.

324.5.2007 10:26

I have 2 LG DVD drives...the 2 year old one that was 50$ still works the new one thats 10ish months old I got for 80 dose not.

LG is a shallow brand.

424.5.2007 13:49

I think this article says a lot. Personally LG products suck. They are normally low quality from my past experiences. I do own A Philips big screen and dvd player. They are great. But their LG versions of products are like the KIA cars of LCD's, dvd players and etc.

This message has been edited since its posting. Latest edit was made on 24 May 2007 @ 13:55

525.5.2007 8:46

I have been a hardware reseller and integrator for MANY years, since even before Mitsumi was the major knockoff brand of choice. LG started out very badly in electronics, but very quickly ramped up their QC in the late 1980's and ever since, we have experienced VERY low failure rates, and consistently high specs from their products.

They, in many market segments like ODDs, are the vendor of choice, (obvious exclusions are a customer who chooses a super-premium branding like Plextor)

In General I've found LG-Philips panels to be second only to Aquos in picture quality, and have long had the lowest DOA and early-failure rates in LCD panels. Since we don't move alot of plasma, I can't address that space.

Just as an FYI, there are ONLY 3 Tier-1 LCD panel manufacturing companies/consortiums; Samsung-Toshiba-Sony, LG-Phillips, and Sharp. of those three, the S-T-S panels by far have the highest failure rate, at least within the confines of the unit's we've sold.

626.5.2007 22:42

I have to reinforce what messaline is saying - LG-Phillips plasmas make everyone else's look like there is something wrong with them. And I can also endorse the Samsung failure rate for things other than screens, of which I have no experience; suffice it to say that over the past three years EVERYTHING that I have bought with a Samsung label has failed within 6 months, and it has been a real struggle to get them to honour their guarantees. So I will now not knowingly ever buy anything with Samsung components.

726.5.2007 22:47

Messaline/bertf
I guess like any other large "manufacture" they have stuff they are good at and stuff they are bad at and go threw periods of bad QC.

816.6.2007 19:50

@Zippy

While I agree with your comment about some things being good, and others not, you can't argue with blind consumer logic.

I've owned 2 LG Cel phones in the past. They both were pretty crappy and refused to work after a short while. In my mind as a consumer, I will be stearing clear of any LG product for some time to come. Their DVD drives may kick butt, but I feel that I've been burned and do not want to repeat the process any time soon.

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