According to a report in the Financial Times, It is on the cards that French hi-tech TV technology company Thomson will sell Grass Valley. Thompson confirmed that it is involved in ongoing discussions with its bankers over the company’s future and its difficulties in meeting banking obligations.
During the pre-Christmas quarter Thomson saw sales fall 8.2%, with revenues for the first 9 months of last year down 13%. Some 23% of the business is to be sold, including the flagship Grass Valley television equipment division.
New boss, Frederic Rose, appointed last September, told the Financial Times that the decision to set a new financial direction for the company was based on a massive €2.1bn in net debt (up €800m in the past year). The FT said that theThomson’s Grass Valley division, which manufactures broadcast, video and film equipment, would be sold along with other activities such as cinema advertising.
The company would refocus around the Technicolor business in which it invested in 2000, Rose said.This division provides services to the film and broadcast post production and production sector.
