The consumer electronics arena could use more competitors to help drive development of new technology and reduce prices; both of which are good for consumers. Today the consumer electronics industry has lost one manufacturer.

Thomson announced today that it has signed an agreement to sell its consumer electronics activities outside of Europe. Thomson also announced that it is in the process of closing its European audio video and accessories activities.

Audiovox Corporation will take over Thomson AV operations outside of Europe and the sale is expected to complete on December 31, 2007. Thomson sold products including DVD and MP3 players under different brands including RCA.

The sale to Audiovox also transfers the rights worldwide to the RCA brand within the AV products field. In January of 2007, Audiovox purchased from Thomson the rights to RCA brand for consumer electronics accessories.

The only portion of its existing business in Europe that Thomson plans to continue operating is its Skymaster activities in Germany.

Cash proceeds of the sale to Audiovox are expected to be slightly more than $56.7 million USD. The costs to shut down European operations are expected to be in the area of $42.5 million USD.