Thomson takes Technicolor in $2bn deal

French consumer electronics giant Thomson Multimedia has bought Carlton Communication's video and processing arm, Technicolor, for $2.065bn as part of a joint venture to develop digital TV technology.

Under the terms of the agreement, Carlton will take a 5.5 per cent stake in the French firm as well as invest $15m in TAK, Thomson's interactive television joint venture with Microsoft. Thomson will pay $1.35bn in cash, and the rest in shares, for Technicolor as part of a strategy to boosts its digital unit. Last week, the French giant acquired the broadcasting business of Philips Electronics. Strategic partners already include Alcatel, NEC and General Motor's DirecTV.