Thomson has put its Grass Valley division up for sale after revealing a fall in year-on-year revenues and admitting that it is ‘likely' to breach a debt covenant.

Grass Valley, the broadcast, video and film equipment manufacturer, is considered to be a non-core asset and will be sold as part of a one billion euros divestment.

The company makes cameras, vision mixers, routers and other major bits of broadcast kit and was bought by Thomson in 2002.

Thomson, which owns Technicolor, will now concentrate on providing services to content creators in the movie and media industries.

Frederic Rose, chief executive of Thomson said: "Today we announce the refocusing of our business on content creators, leveraging our technological expertise and our positioning with network operators. Strengthening our balance sheet is the precondition to implementing this strategic framework."

The French Media company will now explore with its main creditors and potential investors solutions to shore up its balance sheet.

Unaudited consolidated revenues for the fourth quarter of 2008 amounted to 1,468 million euros, a decrease of 8.2% on a constant currency basis as compared to the fourth quarter of 2007.

In addition Thomson Grass Valley has cancelled its stand space at UK technology exhibition Broadcast Video Expo but, contrary to previous reports, will still exhibit at NAB at Las Vegas.