TPV Technology has announced that it will acquire the TV business of Philips in Europe and certain South America countries. The announcement is fairly completed as it encompasses the establishment of a joint venture company, of which TPV will acquire a 70% share. The price of TPV's stake will be announced later, but will be 4 time the Earning before interest and tax for 2012. Consequently, TPV will also be required to pay loyalty for using Philips' brands. Overall, the move is congruent with TPV's existing business model as well as Philips' strategy of using contract manufacturers to produce its products.