It’s amazing how powerful a brand name can be. In fact, some argue that the brand matters more than the product. This is up for debate, of course, but just look to Philips: a big name from the ’70s and ’80s that consumers now trust because the company was once synonymous with innovation (inventing the CD with Sony isn’t just a minor note, after all). Today, there is no shortage of products under this banner. Whether it’s positioning itself as one of the biggest TV brands, producing home appliances like air fryers and espresso makers, or moving into healthcare technology, it really seems like you can find anything Philips-branded if you dig deep enough. Is the company European? Who owns Philips now?
The answer is not as simple as it seems. Companies are no stranger to licensing their divisions. For example, the Sennheiser brand is still owned by the Sennheiser family (third generation), but it has licensed its consumer products division to other companies. Philips, on the other hand, is publicly traded. Although headquartered in Amsterdam, the Netherlands, the majority of Philips (Royal Philips, to be precise) is owned by retail investors; almost 41%, to be exact. Institutional investors represent 40% of the capital.
For consumers, this means that for most products (except medical technology), you simply buy the Philips name, since technically the company doesn’t make the products. For example, one company owns the licensing rights to sell home appliances under that name, while another deals with things like smart lights. It gets even more confusing with products like TVs, because different manufacturers have the right to put the Philips badge on their products in different territories.
Who is the main shareholder of Philips?
The simplest way to explain who owns Philips is to focus on institutions that hold significant shares. Exor NV holds around 19%, followed by the American Causeway Capital Management LLC with 3%. Surprisingly, BlackRock Fund Advisors also holds just over 2%.
Regarding Philips branded products, Royal Philips currently produces health equipment and personal health items, including toothbrushes and electric shavers. Other than that? Philips primarily licenses its name to various companies. For example, global investment firm Hillhouse Capital bought Philips’ entire home appliances business (and obtained the licensing rights for 15 years), renamed the company Versuni, and produced its items in factories around the world. On the other hand, Signify has become a spin-off of the Philips Lighting division. So if you’re buying Philips Hue smart lights, you’re buying something from an independent manufacturer who has the right to use the name.
TVs are the most confusing part of the Philips puzzle. Do you have a TV with the iconic Dutch logo in the United States? In this case, your TV was manufactured by Skyworth, which has licensing rights for North America. Anyone across the pond buying a Philips? TP Vision made theirs. It seems that the iconic Philips brand is still very popular in the world of consumer technology, because everyone wants it on their products as a sign of trust.
