The strony of Philips' plan to sell off its semiconductor business to focus on other businesses is quite long, so I'm going to skip it. This week, the bidding for Philips' semiconductor division has ended. Two firms, by the names Kohlberg Kravis Roberts and Silver Lake Partners have reportedly won the war. The ending price is roughly $10.2 billion USD. The bidding war occurred between three groups of investment companies. While some in the industry were shocked at the initial announcement to sell by Philips, its large semiconductor division accounts for only 17%. Philips originally stated that the semiconductor business was simply too volatile, and that it wanted to focus on more high-margin businesses such as electronics for the health care industry and lifestyle industry. Sources indicate that Philips will be talking about the sale sometime next week. Despite the sale, Philips' semiconductor business actually had a rising year, raking in sales of $1.53 billion in Q2 which was 12 percent higher than the same period last year.Even though the semiconductor division performed well, it affected Philips' overall shares in a negative way because of investor fears about a down cycle in the semiconductor business.
The strony of Philips' plan to sell off its semiconductor business to focus on other businesses is quite long, so I'm going to skip it. This week, the bidding for Philips' semiconductor division has ended. Two firms, by the names Kohlberg Kravis Roberts and Silver Lake Partners have reportedly won the war. The ending price is roughly $10.2 billion USD. The bidding war occurred between three groups of investment companies. While some in the industry were shocked at the initial announcement to sell by Philips, its large semiconductor division accounts for only 17%. Philips originally stated that the semiconductor business was simply too volatile, and that it wanted to focus on more high-margin businesses such as electronics for the health care industry and lifestyle industry. Sources indicate that Philips will be talking about the sale sometime next week. Despite the sale, Philips' semiconductor business actually had a rising year, raking in sales of $1.53 billion in Q2 which was 12 percent higher than the same period last year.Even though the semiconductor division performed well, it affected Philips' overall shares in a negative way because of investor fears about a down cycle in the semiconductor business.
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