Technicolor says sale discussions ‘at a preliminary stage’

Technicolor has released a statement stressing that “any discussions are at a preliminary stage” following reports that the company is exploring options that include a full or partial sale.

The technology company acknowledged press reports and market rumours relating to potential transactions but said that “no strategic decision or commitment has been made.”

“The company regularly reviews and evaluates strategic alternatives for its assets, whether acquisitions, combinations or divestments, in the best interest of its stakeholders,” said Technicolor in a statement.

“This may involve discussions with industry players and/or financial investors. This is an ongoing process in keeping with management’s mission to deliver value for shareholders.”

The news comes after Reuters reported on Friday that Technicolor has been in discussions in recent months with other companies and private equity firms about a selling the business or merging it with a peer.

Citing unnamed sources, Reuters also said Technicolor has been exploring a sale of just its set-top box division, which it claimed is being impacted by the price of memory chips.

Earlier this year, mobile technology research and development company, InterDigital, completed its acquisition of Technicolor’s patent licensing business.

InterDigital paid Technicolor US$150 million in cash to acquire approximately 18,000 patents across a range of technologies – including some 3,000 worldwide video coding patents and applications.

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